Our 2015 Sustainability Report & Highlights

SUSTAINABILITY REPORT 2015 Welcome to our 2015 sustainability report & highlights

This year our printed report has two parts: the full sustainability report and a removable highlights document. There is also a separate databook that can be found online, along with more information, at www.glencore.com/sustainability

Sustainability Highlights Sustainability Report 2015 2015 online

SUSTAINABILITY REPORT 2015 SUSTAINABILITY HIGHLIGHTS 2015

Our sixth sustainability report Our 2015 sustainability highlights Further information on our reviews our activities and booklet provides a succinct overview sustainability activity, plus performance in 2015. It details of our activities and achievements more detailed data on our key how we address our most material during the year. It is designed to be sustainability indicators, is available risks and opportunities; it is aimed read as a standalone document or as on our website: at employees, investors, business part of the full sustainability report. www.glencore.com/sustainability partners, customers, governments and NGOs. Overview | Governance | Our people | Society | Environment | Regional reports | Additional information

We are one of the world’s Overview 03 Chairman’s statement 04 Chief Executive Officer’s review leading integrated 06 Who we are 10 Our business model producers and marketers 03 12 Our strategy 13 Our sustainability approach of commodities. 16 Measuring our performance 18 What we report on Our commodities are 20 About this report grouped into metals & Governance 24 Compliance minerals, energy products 26 External commitments and agricultural products. 28 Climate change 22. 32 Product stewardship

Our people 36 Safety 40 Health 34. 41 Workforce

Society 46 Community engagement 47 Creating value for society 44. 50 Human rights

Environment 54 Environmental management 55 Water 57 Energy and greenhouse gas emissions 59 Land management 52. 61 Waste management

Regional 64 Africa reports 74 South Africa 82 Australia 92 North America 100 South America 62. 110 Rest of the world Additional 114 Glossary information 118 Assurance statement 120 Contacts 114.

Further details on our sustainability approach and performance Ga-Phasha vegetable farming project in the can be found on our website www.glencore.com/sustainability Democratic Republic of Congo

Glencore Sustainability Report 2015 01 Overview

Conducting maintenance on a solar panel at the Rolleston coal operation, Australia

Chairman’s statement

the loss of life at our sites every year, The Board also maintains close and I believe that our goal to eliminate involvement with external and internal fatalities across the Group is realistic stakeholders. Peter Coates, Chair of and achievable. our HSEC Committee, hosted our roadshow for socially responsible With the terrible incident that took investors this year, and I met with place at the Katanga copper mine in a number of individual investors. the Democratic Republic of Congo in Members of the HSEC Committee March 2016, we are again reminded participated in the annual summit, of the overwhelming importance of bringing together senior management focusing on safety at our operations. and safety professionals from our We are saddened to report that we varied operations. HSEC Committee believe that seven of our colleagues meetings are open to other members died in the event. The Board HSEC of the Board; their expertise gives our Committee and I have visited the site discussions new insight. Anthony Hayward, Chairman following the incident; our thoughts are with the families, and we offer Every year, we visit operations to I am pleased to present Glencore’s them our sincere condolences. better appreciate local challenges and sustainability report for 2015. the steps taken to address them; this This has been a challenging year Creating shared value year, the Board visited mines at Lomas for everyone in the resource sector. We are committed to creating value Bayas and Collahuasi in Chile, and Commodity prices fell to multi-year for our shareholders, and we recognise Antamina in Peru. lows, reflecting reduced demand from that to do so we must consider commodity-consuming countries and sustainable, long-term benefits for Building for the future together oversupply after years of investment in all our stakeholders. In 2014 we The global community took two new volumes. The financial and equity developed a set of performance metrics important steps towards a sustainable markets were also volatile. to better understand our socio- future in 2015: first was the launch economic contributions; this year we of the UN Sustainable Development Our decisive approach in responding tested them in pilot studies at several Goals, which are building blocks to the fundamentals of the market locations. These metrics will help us for equitable, socially inclusive and has ensured a robust balance sheet monitor what we contribute to our environmentally sustainable economic for Glencore, with enough flexibility host communities and governments development. The second was the to respond to changing market through the wages, taxes and royalties climate change summit in Paris, where conditions. However, we recognise we pay, as well as our contributions global leaders pledged to hold any that our decisions have greatly to their health, education and increase in the world’s temperature affected some of our people and infrastructure systems. to “well below 2°C” compared to host communities. Wherever these pre-industrial levels, pursuing have led to job losses we have tried We support transparency in dealing sustainable development through to limit them as much as possible. with government revenues as a way to low‑carbon growth. When redundancies have been battle corruption and enable equitable unavoidable, we have worked with revenue distribution. The measures required to achieve our employees, local governments and these goals will bring substantial labour unions to minimise the effects, Leading from the top changes to the way all businesses both with compensation and with The Board continues its active operate. We are committed to ongoing support and help. involvement in the evolution of playing a role in that development; Glencore’s approach to sustainability. this publication reports on some Safety We review every fatality with of the steps we have already taken Whatever else may be happening senior operational management, to in this direction. across our business, safety remains our understand the causes and eliminate highest priority. Tragically, ten people them. In 2015, we also revised lost their lives at our operations during the Glencore Code of Conduct, 2015. This is unacceptable to the Board oversaw the design and testing of and to me; we continue to strengthen a Group HSEC assurance process, Anthony Hayward the safety culture at all our assets, and supervised development of a Chairman regardless of their location or previous catastrophic hazards register. safety performance. We are reducing

Glencore Sustainability Report 2015 03 Overview

Chief Executive Officer’s review

Safety In March 2016, there was a fatal Safety remains our top priority incident at the Katanga copper mine at every level of the Group. We are sad in the Democratic Republic of Congo. to report that ten people lost their lives It is with deep sadness that we must while working at Glencore operations now assume any individual who in 2015. No fatality is acceptable, was in the open pit at the time did and we are committed to our goal not survive, meaning that seven of of zero fatalities. our colleagues have lost their lives. The Board HSEC Committee and I Loss of life at our operations continues visited the site following the incident. to decrease year on year. We are We express our sincere condolences spurred on to continue identifying and to the family, colleagues and friends managing fatal hazards and driving of the individuals who died as a behavioural change to achieve our result of this tragic incident. We are goal. We can also see that our efforts Ivan Glasenberg, Chief Executive Officer providing all appropriate support to implement strong standards and to those affected. transform safety cultures at our “focus assets” are starting to bear fruit. Strengthening our We have had to make difficult These are assets in remote locations financial situation decisions this year to help our Group with specific legacy issues: a leading In the face of demanding market weather a challenging economic example is Kazzinc, a zinc facility conditions, our management team climate and falling commodity prices. in Kazakhstan with a workforce of implemented tough measures to While our discipline in cost control almost 27,000 people. In 2015, Kazzinc tackle the imbalance between demand and supply has ensured that our achieved its first year without fatalities and supply this year. This included assets continue to operate profitably, since we took operational control. reducing or halting production where our approach has resulted in some SafeWork has now been implemented demand for our commodities is operations being placed into a “care at all our assets and is still delivering insufficient. These difficult decisions and maintenance” phase, with safety improvements. Last year we have strengthened Glencore’s balance production suspended. set a target of a 15% reduction across sheet and will significantly reduce our net debt. We continue to run a large We are aware of the effects this has the Group in our total recordable number of low-cost assets that are cash had on our people and our host injury frequency rate (TRIFR) and lost generative, focus on cost control and communities; we have worked hard time injury frequency rate (LTIFR). deliver sustainable returns. to engage with everyone affected and We have over-performed against our ensure appropriate support. We have LTIFR target, while TRIFR figures Although reducing our production also prioritised our focus on continual are on track to meet our 2020 goal. volume has had an immediate negative improvement with regard to safety, to In addition, the number of new impact on those of our people and host managing our contributions to society, occupational disease cases has reduced communities affected, we believe that and to maintaining open dialogue by 40%. it is better to keep resources in the with all stakeholders. ground for better times, and ensure sustainable futures for our assets.

Creating value for society We have been implementing the During visits to Prodeco and Cerrejón, We are committed to contributing Voluntary Principles at those our local teams highlighted the issues to socio-economic development within of our assets with a high risk of they face with the local community, our host regions. We employ local human rights breaches since 2013. particularly the impact of an extended people whenever we can; we source We have reported our progress in drought. The Swiss visitors met from local businesses; we support our annual sustainability reports. community residents and observed education and health programmes Our membership of the Voluntary the various initiatives we support to in our host regions; and we ensure Principles Plenary will help us make bring real change to the region. A short that our infrastructure is scaled up for further progress in optimising our film documenting this trip is available shared public use wherever possible. approach to human rights and sharing on our website and YouTube channel. knowledge and leading practice. In 2015, we carried out a number Looking forward of pilot studies to help us better Climate change Forecasts for 2016 indicate that the understand our contributions, In December 2015, world leaders, challenging economic climate will following on from the performance corporations, NGOs and members continue. We remain committed to metrics we created in 2014. These of civil society gathered in Paris balancing expenditure control with metrics allow us to monitor our to discuss how the global community maintaining our progress in safety contribution to our host communities should address the impact of climate and managing our environmental and governments through wages, change. We recognise that climate and societal impact. taxes and royalties, and via our change issues are part of the political, The proactive steps we have taken support for their health, education societal and regulatory landscape in this year to strengthen our balance and infrastructure systems. which we operate. We believe that sheet have already led to a significant all carbon strategies need to reflect We will roll these metrics out to our reduction in our net debt; we believe the realities of global energy demand assets in 2016, allowing us to start that this, and similar future decisions, and supply, and balance this with the developing a Group overview of the will give us the flexibility to prosper societal and economic aspirations financial and non-financial value regardless of market conditions. we create for our host countries. of all countries. This will also support our goal of None of this would be possible without continuous improvement. Engagement with stakeholders the hard work and commitment of We are continuing with our open door all those working for the Glencore Safeguarding human rights policy on stakeholder engagement. Group. I’d like to thank you all for your Glencore became a member of the We believe that a constructive continued support. Plenary of the Voluntary Principles approach to engagement, regardless on Security and Human Rights of the stakeholders’ views, is essential (Voluntary Principles) Initiative this for maintaining our licence to operate. year. The Voluntary Principles bring During 2015, a number of Swiss together governments, extractive sector residents expressed concern about Ivan Glasenberg businesses and non-governmental operations at Prodeco and Cerrejón, Chief Executive Officer organisations to discuss how best to our coal assets in Colombia. I took keep operations safe and secure while the opportunity to accompany some encouraging respect for human rights. of these residents and NGOs on a fact-finding visit to those assets; I was pleased by the progress of our dialogue.

Glencore Sustainability Report 2015 05 Overview

Who we are

Glencore plc is one of the world’s largest diversified and integrated producers, processors and marketers of commodities. We market and distribute physical commodities sourced from third-party producers as well as our own production. We also provide financing, processing, storage, logistics and other services to both producers and consumers of commodities. We are a major producer and marketer of over 90 commodities. Our operations comprise over 150 mining and metallurgical, oil production and agricultural assets. Our activities are supported by a global network of more than 90 offices in over 50 countries. We employ around 160,000 people, including contractors.

North America 51% of our procurement budget spent with local suppliers

See Regional report: North America for more details

South America $1 million + spent on community investment for around 5,000 Chileans

See Regional report: South America for more details Key

Metals & Minerals

Energy Products

Agricultural Products

Corporate office

Marketing office/other

Our company is structured into three business segments:

Metals & Minerals Energy Products Agricultural Products

These businesses include the These businesses cover industrial This business is focused on grain, production and trading of copper, and marketing activities for coal oilseeds products, sugar, pulses zinc & lead, nickel, ferroalloys, and oil, including controlled and and cotton. It is supported by alumina & aluminium and iron ore. non-controlled coal mining and controlled and non-controlled storage, We have interests in both controlled oil production operations, and handling and processing facilities and non-controlled industrial assets investments in strategic handling, in strategic locations. that include mining, smelting, refining storage and freight facilities. and warehousing operations.

Rest of the World 58% of our procurement contracts in Kazakhstan were with local suppliers

See Regional report: Rest of the World for more details

Africa Australia $1.37 million $1.9 billion invested in infrastructure, spent on annual mainly water and power wages and salaries distribution, in Namibia See Regional report: Australia See Regional report: Africa for for more details more details

South Africa 47,000 community residents benefited from our healthcare and education programmes

For more information, visit www.glencore.com/sustainability

Glencore Sustainability Report 2015 07 Overview

Who we are continued...

We divide the assets and activities We take our responsibilities to We work in accordance with the of our business into two categories: our people, to society and to the relevant international frameworks industrial, which is related to environment very seriously, and align for a number of specific issues. commodity production and processing; all our activities with the relevant These include the Core Conventions of and marketing, which covers trading international standards. In 2014 we the International Labour Organization and sales activities, as well as the signed up to the United Nations Global (ILO), the UN Guiding Principles on infrastructure and resources used to Compact, a set of principles covering Business and Human Rights (UNGPs), transport products to customers. human rights, labour, environment and and the Extractive Industries anti-corruption. We were also admitted Transparency Initiative (EITI). to the International Council on Mining There are more details on this in the & Metals (ICMM) and endorsed its Governance chapter. sustainable development framework principles. In March 2015, we joined the Voluntary Principles on Security and Human Rights Initiative.

N ESSE TIAL P ING RO ID DU V C O T UE TO OUR R S AL H P V OS G T IN R NG RESPO R E TI N E G A S V I R IB I O L E L N P Y E S O D

How we do it What we deliver What we provide

• Safety is our • Our presence brings lasting • Our commodities are part of top priority benefits to the regions in society’s everyday products which we operate • We identify, • Our logistics business transports understand and • We make significant payments commodities to the places that need mitigate our to governments in our them most environmental risks host countries • We promote responsible behaviour • We engage with • We create value through throughout the commodity chain local communities local employment and through direct relationships with our and stakeholders procurement, training and customers and business partners skills development • We respect human rights • We invest in local communities, health, • We use renewable education and infrastructure energy sources when possible • We focus on catastrophic hazard management

Water quality monitoring at Kerale Dam near our Collinsville coal operation, Australia

Glencore Sustainability Report 2015 09 Overview

Our business model

Integration of sustainability Maintain robust and flexible balance sheet Strategic imperatives: throughout the business Inputs:

Assets and natural resources Our people and partners • We wholly own or have a significant ownership in our assets, • Over many years, we have cultivated and established long-term in which we make long-term investments. We prioritise being relationships with a broad range of suppliers and customers a competitive, low-cost producer. across diverse industries and geographies. • Our resources and reserves are high quality and long life, • Our highly skilled and professional workforce of around enhancing the scale and quality of our marketing business. 160,000 employees and contractors is located on six continents. • We are a disciplined producer and align supply to demand. • We interact with many diverse stakeholders around the world. We are committed to building transparent and constructive relationships with our partners to deliver sustainable, long-term benefits to all of our stakeholders.

LTURAL PRO CU DU RI CT G S A M LS & INER TA A E LS M E RG EN Y EXPLORE, ACQUIRE & DEVELOP EXTRACT & PRODUCE

Explore, acquire & develop Extract & produce Our exploration activities take place We mine and beneficiate minerals across close to our existing assets, supporting a broad range of commodities, mining the development of brownfield sites. techniques and countries, for processing We believe that this approach lowers and/or refining at our own facilities or our risk profile and lets us use existing for sale to third parties. infrastructure, realise synergies and Extraction and production of commodities control costs. Each industrial investment involves a long-term commitment as opportunity is evaluated on a standalone well as exposure to risks relating to basis and on its potential to strengthen our commodity prices, project development, marketing activities or existing industrial changes in sovereign legislation and assets. Our approach allows us to build on community acceptance. our economies of scale, our familiarity with An integral part of developing and a political and cultural landscape and our maintaining our assets is earning our understanding of commodity dynamics. social licence to operate from the host governments and the communities around our operations.

Outputs: Sustainable business

Safe and healthy workplace | Long-term value for communities | Socio-economic contributions | Skilled workforce Principal risks and uncertainties: Total recordable injury frequency rate (TRIFR) | Water withdrawn | Greenhouse gas (GHG) emissions KPIs: Community investment spend

Strategic imperatives: Focus on cost control and operating efficiencies

Financial discipline Unique market knowledge • We deploy capital in a disciplined manner, which creates value • Our scale and global reach give us valuable insight into for all of our stakeholders. We have a long track record of value market flows and access to real-time information. creation across economic cycles. • Our long experience has allowed us to build extensive market • Our hedging strategies protect us against price risks and knowledge and insight, as well as full logistics capabilities. ensure that our marketing profitability is primarily determined • As a commodity producer and marketer, we are uniquely by volume-driven activities and value-added services rather positioned to generate value at every stage of the than absolute price. commodity chain.

COMMODIT UR IES O AY P RYD ROD VE UC E T N S MARKETING I

PROCESS & REFINE BLENDING & LOGISTICS & OPTIMISING DELIVERY

THIRD PARTY

Process & refine Blending & optimising Our expertise and technology advantages Through our presence at every stage in processing and refining activities enable of the commodity chain, we are able us to optimise our end products for a wider to provide a wide range of product customer base. specifications resulting in a superior service Logistics & delivery Our smelting and refining facilities for our customers. Our logistics assets allow us to handle provide volumes that are utilised by Our ability to blend and optimise products, large volumes of commodities, to fulfil our marketing teams. through using both our own and third- our marketing obligations and to take Our ownership of processing and refining party volumes, means we are better placed advantage of demand and supply imbalances. assets increases our flexibility and optionality to meet the exact requirements of We have global storage and logistics assets and provides security of supply as well our customers. in key strategic locations, including metal as enabling us to gain valuable market Working with third-party suppliers warehouses accredited by the London Metal knowledge. provides a fuller oversight of supply. Exchange and numerous oil and grain storage facilities worldwide. The broad range We purchase and process additional This allows us to gain valuable market and of value-added services we offer fulfils the products as required from smaller local knowledge and to better understand needs of customers that do not have the operators that do not enjoy the same the balance between supply and demand. equivalent internal capability and make economies of scale. us a preferred counterparty as well as strengthening our long-term relationships.

Financial performance

Returns to shareholders | Value for our stakeholders Principal risks and uncertainties:

KPIs: Adjusted EBIT/EBITDA | Funds from operations (FFO) | Net funding | Net debt/FFO to Net debt | Net income

Glencore Sustainability Report 2015 11 Overview

Our strategy

Our objective is to grow total shareholder returns while maintaining a strong BBB/Baa investment grade credit rating.

Strategic priority Strategic priority Strategic priority Integration of Maintaining a Focusing on cost sustainability robust and control and throughout the flexible balance operating business sheet efficiencies

Strategic objectives: Strategic objectives: Strategic objectives: • We take an approach of • We are committed to maintaining • Continuously seek to increase the continuous improvement with and strengthening our balance net present value of our business regards to our sustainability sheet to ensure it is capable by improving the competitiveness actions and performance. of supporting growth and of our assets through an ongoing We believe that by being a better shareholder returns regardless focus on cost management and operator with a reputation for of the commodity price logistical capabilities, including doing things the right way, we environment. operating safely and efficiently. will be regarded as a partner of • Preserving a robust capital • Relentlessly leverage the choice by the governments of our structure and business mix in scale and capabilities of our host nations and the communities line with our commitment to marketing activities to extract living near our operations. strong BBB/Baa investment grade additional margin throughout • A key part of our commitment rating status. our entire business model and to operating responsibly is to provide a superior service to • Continuously evaluating develop, maintain and strengthen customers and a reliable supply opportunities for acquisition, our relationships with all of our of quality product. development and disposal, stakeholders. We engage in a particularly when assets no longer • A disciplined approach to supply transparent and open manner support core business. in response to market conditions. and recognise that constructive relationships are essential for our social licence to operate.

Key performance Key performance Key performance indicators: indicators: indicators: • Safety • Adjusted EBIT/EBITDA • Adjusted EBIT/EBITDA • Water • Funds from operations • Funds from operations • GHG emissions • FFO to net debt • FFO to net debt • Community investment spend • Net income

Our sustainability approach

Our approach to sustainability is embodied by Glencore Corporate Practice (GCP). This consists of three tiers: our values, our Code of Conduct and our Group HSEC policies. GCP is supported at asset level by operational policies, created for the specific needs of individual assets, with compliance Our values reflect our purpose, our priorities and the fundamental beliefs by determined by performance Values which we conduct ourselves. They define monitoring and assurance. Safety what it means to work at Glencore, Entrepreneurialism regardless of location or role. Simplicity Responsibility Openness

Our Code of Conduct defines the essential requirements of our values and sets out the standards we require our people to meet Code of Conduct and fully understand. Departments and assets decide the best way to convey the Code locally, including specialised training.

Group HSEC policies Detail our management processes and procedures

1. Health and safety Our Group HSEC policies detail 2. Emergency response and crisis management our management processes and 3. Catastrophic and fatal hazards management procedures, which are integrated 4. Environmental management into corporate decision-making processes. 5. Communities and stakeholder engagement 6. Human rights 7. Product stewardship 8. HSEC assurance 9. HSEC management framework 10. Risk management framework

GCP is supported at the operational Operational policies level by individual Group HSEC policies are implemented and adapted locally policies pertaining to local risks.

We monitor our performance Performance and alignment using a Group GCP database Data reporting, risk management and assurance by HSEC teams at group, and via a full division and asset level tracks our performance and alignment with policies assurance process at both Group and asset level.

Glencore Sustainability Report 2015 13 Overview

Our sustainability approach continued...

Applying the framework Our larger assets have individual In 2015, we continued implementation sustainability teams; along with of our SafeWork fatal hazard Board HSEC Committee departmental teams, they are protocols, and focused our efforts on Our Board HSEC Committee sets responsible for implementing Group identifying all catastrophic hazards the strategic direction for Glencore HSEC policies at their operations across the Group. These form the sustainability activities and oversees and making sure that we achieve our basis of the Group HSEC assurance the development and implementation sustainability goals. They manage process. In 2016 this will concentrate of strategic HSEC programmes. the HSEC risks specific to their on assessing catastrophic hazard The committee comprises four Board commodities or regions, and deliver management at the majority of our members, including our Chairman and department-level HSEC assurance. underground mines and operations CEO; it is chaired by a Non-Executive with high risk tailings storage Director. It meets during each Board Oversight from the top facilities, and reporting results meeting to review progress on Oversight and ultimate responsibility to the Board HSEC Committee. delivery of the Group HSEC strategy, for our Group HSEC strategy, the GCP our dashboard of key performance framework and its implementation Assessing our sustainability performance indicators (KPIs), and any significant across the Group rests with our senior HSEC issues and/or material HSEC management team. This includes our Our HSEC assurance policy risks, as well as to examine the HSEC CEO and CFO, and the heads of our specifies activity at both Group and assurance reports. commodity businesses. departmental/asset levels. In 2015 we rolled out the Group HSEC In the event of a fatality or a Sustainability risk management major incident, the committee framework assurance programme, which focuses receives detailed reports from the on ensuring that our catastrophic Our approach to sustainability management of the relevant operation. hazards and associated risks are being management is anchored in our These cover the nature of the incident, managed effectively. Twelve assurance processes for the identification, the actions taken and details of activities were completed at various assessment and mitigation of risk. subsequent investigations. assets, covering a different set of The Glencore risk management catastrophic topics for each, agreed Our sustainability teams framework and its supporting by the Board HSEC Committee. guidelines, which apply to all our Our Group-level and departmental assets, outline these processes. The annual plan is approved by our sustainability teams provide guidance The framework is aligned with Board each year; those responsible for and thought leadership. Our Group international standards and provides the assurance activities report back to sustainability team develops a standardised approach to managing the Board regularly on performance and oversees implementation of our health, safety, environment, including key findings, observations HSEC policies and improvement community and reputational and good practices. programmes, as well as delivering risks, as well as those linked to HSEC assurance processes. It also A typical assessment includes two the management of financial and subject matter experts, predominantly reviews the sustainability aspects legal issues. of our Code of Conduct and revises from within the business but not from them as necessary. It provides Our assets use the framework to the asset under assessment. In some regular updates to the Board HSEC identify hazards, particularly those cases external experts are engaged. Committee, both formally through the with potentially major or catastrophic The experts work against clearly committee’s scheduled meetings, and consequences, and to develop plans defined and agreed criteria, informed on an ad hoc basis when required. to address and eliminate, or mitigate, by international standards and leading the related risks. Management tools practice. They make recommendations The Group and departmental HSEC such as protocols, training packages, and we track agreed corrective actions teams focus on catastrophic and fatal software and reporting processes, on a quarterly basis. hazard management, identify relevant are available. We also require assets HSEC trends, analyse stakeholder To complement Group assurance to develop protocols for addressing activity, each department implements perceptions and their understanding hazards that could cause fatalities. of Glencore, and record and report their own internal and external progress against KPIs. assurance activities, covering areas such as catastrophic hazards, fatal hazard protocols, HSEC policies, legal compliance and HSEC data.

Our 2015 sustainability strategy

In 2015, we revised our Group sustainability strategy, considering our aims against four core pillars: health; safety; environment; and community & human rights. This review involved the sustainability teams from our individual assets and commodity departments as well as technical experts, to ensure that the revised strategy fully supports our business requirements. Our revised strategy has clearly defined imperatives, objectives, priority areas and targets. It will enable us to meet legislative requirements, manage the catastrophic hazards associated with our business, and maintain our societal licence to operate. Departments and assets have aligned their annual HSEC plans to the strategy. The strategy’s four core pillars and connected imperatives are:

Health Safety Environment Community & human rights Become a leader in the Become a leader in Minimise any negative Foster sustainable growth protection and improvement workplace safety, environmental impact from and respect human rights of our people’s and eliminating fatalities our operations and apply wherever we operate. communities’ wellbeing. and injuries. the precautionary principle in decision-making.

In addition to these pillars, our materiality assessments for 2015 have identified three further focus areas:

Our people Governance Product stewardship

Our activities in these seven areas are detailed in this report. We will review this strategy each year to ensure that it continues to fulfil the needs of our business.

Glencore Sustainability Report 2015 15 Overview

Measuring our performance

Commitment 2015 target Results 2016+ target Find out more Continuous improvement of our Our people: • No fatalities • Not achieved • No fatalities See pages 36 to 39 assets’ performance and regular • 50% reduction of Group LTIFR by the end of 2020, reporting are core aspects of safety • Further 15% reduction of Group LTIFR against 2010 baseline of 2.74 • 16% reduction achieved during 2015 against 2015 figure of 1.32 our approach to sustainability. • 52% reduction achieved between 2010 and 2016 • 50% reduction in TRIFR by 2020 taking 2014 figures as baseline We review and update our targets • 15% reduction in Group TRIFR against 2014 baseline of 5.82 • 13% reduction achieved on a regular basis as part of our (in line with the 50% target for 2020) strategic review; this includes a mix of qualitative, short-term and Our people: • No new occupational diseases from current exposure • Not achieved • No new occupational diseases from current exposure See page 40 medium-term targets. health • No workers with lead/cadmium levels above established/legal limits • Ongoing monitoring and testing; relocation of workers nearing site limits

Environment • No major or catastrophic environmental incidents • Achieved • No major or catastrophic environmental incidents See pages 54 to 61 • Implement the water management framework across the Group • Develop a Group water management strategy • Strategic water management framework developed and shared and assess assets identified as having high water-related risk with the business • Independent inspection of all surface tailings dams at least every three years • Align water use metrics and launch water balance tool • Metrics aligned and incorporated into GCP

• Develop action plan based on assessment of storage facilities for tailings • Achieved (residues of mineral processing)

Community investment • $94 million spent • Continue to spend 1% of annual Group profits on community See pages 46 to 49 Society investment • Continue to spend 1% of annual Group profits on community investment • Assets to implement Group societal value scorecard framework • No serious human rights incidents • Establish partnerships to strengthen project delivery on the ground • Not achieved due to operational changes

• Operations to conduct independent perception surveys every three years • On track; this is a continuous target

Human rights • Reviewed during ongoing Voluntary Principles implementation See pages 50 to 51 • Support consistent training on Voluntary Principles across Group

• Review approach to grievance handling against the principles of the • Completed; revised guidance to roll out in 2016 United Nations Global Compact

• Build on the success of current graduate trainee programmes and • On track: this is a continuous target • Continue to strengthen trainee programmes and develop See pages 41 to 42 Our people: continue to develop divisional leadership training leadership training workforce • Continue to support and foster development of talented people • Launch eLearning platform for new hires and training our existing • On track: rolled out in most marketing offices; industrial assets regardless of age, gender or race through local employment, workers, including compliance, IT security, Code of Conduct are adjusting existing platforms internships, scholarships or training • Become an employer of choice in the marketplaces where our • Ensure that this is approached consistently across all regions and • Global employer branding completed March 2015; rollout to be main offices and industrial operations participate continue to develop new ways to attract and retain talented people completed mid-2016 regardless of age, gender or race

• Substantial implementation of Group HSEC policies and internal • On track/completed • 28 assessments scheduled for 2016, including two outstanding See page 14 Governance: assurance programme by the end of 2015 from 2015 programme continual improvement • Launch revised code of conduct • Completed of GCP framework • 14 Group assurance reviews on material and catastrophic HSEC • 12 completed; two will be completed during 2016 hazards across every department in the Group

• Register substances produced/imported in low volumes with REACH • Preparation for registration is proceeding to schedule • Register substances produced/imported in low volumes with See pages 32 to 33 Product (deadline 2018) REACH (deadline 2018) stewardship • Assess Korean REACH obligations and prepare for action • Assess Korean REACH obligations and prepare for action • We are closely monitoring developments, assessing our role to ensure compliance to ensure compliance and evolving our strategy • Group review of occupational exposure levels to incorporate Key into health strategy • Ensure our mixtures are classified with European regulations on • Completed classification, labelling and packaging of substances and mixtures (CLP) • Continue phase 2 of review and initiate phase 3 Achieved before 1 June 2015 (complex metal products) • Conduct self-assessment on implementation of product On track • Start review of safety datasheets to keep them up to date • Phase 1 of review (oil products) close to completion; preparation stewardship policy, analyse results and follow up for phase 2 (metals) ongoing • Finalise our conflict minerals policy

Not achieved • Launch a product stewardship policy • Completed

Commitment 2015 target Results 2016+ target Find out more Our people: • No fatalities • Not achieved • No fatalities See pages 36 to 39 • 50% reduction of Group LTIFR by the end of 2020, safety • Further 15% reduction of Group LTIFR against 2010 baseline of 2.74 • 16% reduction achieved during 2015 against 2015 figure of 1.32 • 52% reduction achieved between 2010 and 2016 • 50% reduction in TRIFR by 2020 taking 2014 figures as baseline • 15% reduction in Group TRIFR against 2014 baseline of 5.82 • 13% reduction achieved (in line with the 50% target for 2020)

Our people: • No new occupational diseases from current exposure • Not achieved • No new occupational diseases from current exposure See page 40 health • No workers with lead/cadmium levels above established/legal limits • Ongoing monitoring and testing; relocation of workers nearing site limits

• Develop action plan based on assessment of storage facilities for tailings • Achieved (residues of mineral processing)

• Operations to conduct independent perception surveys every three years • On track; this is a continuous target

Human rights • Reviewed during ongoing Voluntary Principles implementation See pages 50 to 51 • Support consistent training on Voluntary Principles across Group

• Review approach to grievance handling against the principles of the • Completed; revised guidance to roll out in 2016 United Nations Global Compact

• Register substances produced/imported in low volumes with REACH • Preparation for registration is proceeding to schedule • Register substances produced/imported in low volumes with See pages 32 to 33 Product (deadline 2018) REACH (deadline 2018) stewardship • Assess Korean REACH obligations and prepare for action • Assess Korean REACH obligations and prepare for action • We are closely monitoring developments, assessing our role to ensure compliance to ensure compliance and evolving our strategy • Group review of occupational exposure levels to incorporate into health strategy • Ensure our mixtures are classified with European regulations on • Completed classification, labelling and packaging of substances and mixtures (CLP) • Continue phase 2 of review and initiate phase 3 before 1 June 2015 (complex metal products) • Conduct self-assessment on implementation of product • Start review of safety datasheets to keep them up to date • Phase 1 of review (oil products) close to completion; preparation stewardship policy, analyse results and follow up for phase 2 (metals) ongoing • Finalise our conflict minerals policy

• Launch a product stewardship policy • Completed

Glencore Sustainability Report 2015 17 Overview

What we report on

Materiality review We conduct a materiality assessment each year to establish what is material to our annual sustainability reporting. Our assessment draws information from three key elements:

Materiality assessment

1 2 3 Understanding issues Regulatory developments Feedback mechanisms

Our understanding of the issues that Regulatory developments and deadlines: Feedback mechanisms: topics raised affect our business and the natural our requirements under the law and how during engagement with our people resources industry sector they affect our activities and external stakeholders

Topic Material issue Stakeholders to whom it matters most Our position In line with the Global Reporting Our people: safety • Fatalities • Our people The safety of our people is our top priority. We believe all fatalities and injuries are preventable and that safe workplaces Initiative (GRI) guidance on • Injuries • Labour unions result from a strong safety commitment on the part of both management and workforce. We continually work to improve our safety performance across the Group. materiality, our assessment process • Our host governments See pages 36 to 39. begins with a Group-wide review • Communities of material topics at global and local levels. This identifies topics raised Our people: health • Occupational health • Our people We constantly look for ways to improve our health management and contribute to public health programmes in our host • Public health • Our communities countries, working with local authorities and community representatives to tackle the major issues in different regions. during structured engagement Although challenges vary widely across the Group, we are developing a consistent approach across our assets. • Labour unions activities, by a broad range of internal See page 40. • Our host governments and external stakeholders. It considers • NGOs the issues that affect our peers and the entire sector, assessing media coverage Environment • Water use • Our host communities Our activities have a range of actual and potential environmental impacts; we work to eliminate or minimise these. and feedback from local communities. • Energy use • Our host governments Where this is not possible we compensate for them. We will continue to improve how we minimise impacts through real‑time monitoring and continual review of mine closure plans. • Waste management • Our business partners The impacts include the generation of significant quantities of waste, including rock, tailings and slag, and various We report on issues with global • Land use and closure management • Our investors effects on air quality. Our mining, transport and logistics activities produce emissions that include GHGs. interest or impact, or that affect more • Climate change • NGOs Our assets use significant levels of water and energy; we are aware of the need to share water resources to ensure than one region. The regional sections • Air quality/emissions equitable access for all. at the end of this report focus on A number of our assets are entering suspension or closure; we will continue to monitor our environmental actions taken to address issues that are impacts throughout. See pages 54 to 61. material to those locations. We consider a topic material if senior • Respecting human rights • Our people We engage with our host communities through regular dialogue, and work closely with them to maximise the value our Community & business creates for them and for society. management determines that it may • Engagement with communities and stakeholders • Our host communities human rights • Making a contribution to society • Our host governments We actively seek broad-based, ongoing support from our local communities, including indigenous people and vulnerable groups, as part of our licence to operate. This includes grievance mechanisms to receive, record and action complaints. significantly affect our business • Our business partners We are committed to respecting the human rights of our workforce and host communities. operations or have a significant impact • Our investors See page 46. on any of our stakeholders. • NGOs

This assessment is then approved by Our people: workforce • Work conditions • Our people We recognise and uphold the rights of our people to a safe workplace, freedom of association, collective representation, the Board HSEC Committee. • Workforce attraction and retention • Labour unions just compensation, job security and development opportunities. We prohibit child, forced, or compulsory labour. We are committed to working honestly and openly with labour unions across the Group. • Management of operational changes • Our host governments In times of operational changes, we work with our employees, labour unions and host governments to identify and agree • Engagement with labour unions • Our host communities alternative opportunities, severance packages and support during transition. See page 42.

Governance • Taxes and royalty payments to host governments • Governments The payments we make to our host governments in the form of taxes and royalties often represent a significant • Our host communities proportion of their incomes. Levels are determined by the relevant national, regional or local governments in accordance with local laws and regulations. • NGOs We work with a variety of stakeholders on this topic and support increased transparency around the redistribution/ • Our business partners reinvestment of such payments. We support the Extractive Industries Transparency Initiative (EITI). • Our investors See pages 47 to 48.

Product stewardship • Regulatory compliance • Governments Good product stewardship is inherent to our value chain; it is an important element in compliance with regulations • Access to market • Our customers and maintaining public and environmental health. It allows us to deliver competitively priced goods and services, and provide the information necessary for safe handling, use and disposal. • Public and environmental health See pages 32 to 33.

Global material issues Engagement, both on regulatory matters and with our stakeholders, is common to all the material topics identified in the table below. Regulatory engagement Stakeholder engagement Our activities are heavily regulated. Our operations can We engage with all stakeholder groups to build meaningful be significantly affected by evolving local and national relationships and understand their expectations and government legislation and policy, as well as international aspirations. This minimises our negative societal impact, regulations. We develop constructive relationships with optimises the value we bring to local communities, and all levels of government in our host countries, as well as maintains our licence to operate. Recent market conditions fostering public dialogue and contributing to legislation have meant that some local communities and NGOs have development in sectors that affect our business. We devote been extremely critical of the mining sector as a whole, significant resources to ensuring compliance with all making open and transparent engagement ever more permit requirements. important. The geographies and markets in which we operate are extremely complex and we conduct dialogues on local, national, regional and international levels.

Topic Material issue Stakeholders to whom it matters most Our position Our people: safety • Fatalities • Our people The safety of our people is our top priority. We believe all fatalities and injuries are preventable and that safe workplaces • Injuries • Labour unions result from a strong safety commitment on the part of both management and workforce. We continually work to improve our safety performance across the Group. • Our host governments See pages 36 to 39. • Communities

Our people: health • Occupational health • Our people We constantly look for ways to improve our health management and contribute to public health programmes in our host • Public health • Our communities countries, working with local authorities and community representatives to tackle the major issues in different regions. Although challenges vary widely across the Group, we are developing a consistent approach across our assets. • Labour unions See page 40. • Our host governments • NGOs

Environment • Water use • Our host communities Our activities have a range of actual and potential environmental impacts; we work to eliminate or minimise these. • Energy use • Our host governments Where this is not possible we compensate for them. We will continue to improve how we minimise impacts through real‑time monitoring and continual review of mine closure plans. • Waste management • Our business partners The impacts include the generation of significant quantities of waste, including rock, tailings and slag, and various • Land use and closure management • Our investors effects on air quality. Our mining, transport and logistics activities produce emissions that include GHGs. • Climate change • NGOs Our assets use significant levels of water and energy; we are aware of the need to share water resources to ensure • Air quality/emissions equitable access for all. A number of our assets are entering suspension or closure; we will continue to monitor our environmental impacts throughout. See pages 54 to 61.

Community & • Respecting human rights • Our people We engage with our host communities through regular dialogue, and work closely with them to maximise the value our • Engagement with communities and stakeholders • Our host communities business creates for them and for society. human rights • Making a contribution to society • Our host governments We actively seek broad-based, ongoing support from our local communities, including indigenous people and vulnerable groups, as part of our licence to operate. This includes grievance mechanisms to receive, record and action complaints. • Our business partners We are committed to respecting the human rights of our workforce and host communities. • Our investors See page 46. • NGOs

Our people: workforce • Work conditions • Our people We recognise and uphold the rights of our people to a safe workplace, freedom of association, collective representation, • Workforce attraction and retention • Labour unions just compensation, job security and development opportunities. We prohibit child, forced, or compulsory labour. We are committed to working honestly and openly with labour unions across the Group. • Management of operational changes • Our host governments In times of operational changes, we work with our employees, labour unions and host governments to identify and agree • Engagement with labour unions • Our host communities alternative opportunities, severance packages and support during transition. See page 42.

Glencore Sustainability Report 2015 19 Overview

About this report

This is our sixth annual sustainability The report contains data for the Selected 2015 KPIs within this report report. Last year’s report described full year 2015. Acquisitions are only were subject to limited assurance our activities to develop and roll out included if they were integrated before (see Appendix 2) by Deloitte LLP. an enhanced sustainability strategy 1 July 2015. Closed sites (or sites in the Where data for previous reporting to reflect our enlarged, unified Group. care and maintenance phase of their years has been restated, Deloitte LLP In 2015, we continued to consolidate lifecycles) report on a limited indicator has not undertaken additional work our Group approach in the context set, reflecting their reduced activities to review accuracy and completeness. of a greater societal and stakeholder and workforce. Data from divestments No assurance is provided over restated interest in climate change and is included until the month before data. Any restatements of assured data resource efficiency. disposal. Workforce numbers are the are explained. exception to this rule, as they are based This sustainability report complies We may change our approach to on the end of year status. As a result, with the core level of the Global how we report our data in future this report does not include workforce Reporting Initiative (GRI) G4 sustainability reports without prior data from any assets disposed of sustainability reporting guidelines, announcement; we may also change earlier than 31 December 2015. including the metals and mining the reporting of specific data and sector supplement. We have a separate In January 2016, Sherwin Alumina its interpretation. online GRI index with further details, Company filed for Chapter 11 Glencore made disclosures to the at www.glencore.com/sustainability bankruptcy; data from this asset Dow Jones Sustainability Index and is included in our figures for 2015, As signatories to the principles of the CDP’s climate change and water but it is not otherwise addressed in the United Nations Global Compact programmes in 2015. significant detail in this report. (UNGC), this report serves as our Related publications advanced level UNGC Communication Data and information on Progress, outlining our support for We have published a number of The data in this report is taken from its broader development objectives standalone reports in 2015 that are Glencore’s GCP reporting systems. and our work on implementing the connected to our sustainability The metrics in this report reflect those principles. It also serves as our report activities. All of these reports are used in the commodity markets and on how we are applying the ICMM published on our website. sustainable development principles sectors in which we operate and are and position statements since our primarily based on GRI indicators, This year we have a separate online admission to membership in 2015. including indicators from the GRI databook, which meets GRI indicator metals and mining sector supplement. requirements. This is available at The report’s GRI compliance has been www.glencore.com/sustainability independently assured by Deloitte LLP In some instances, figures from (Appendix 2). previous years have been restated There is a list of Glencore’s publicly to reflect improvements in our data available policy documents at Boundaries and scope collection, analysis and validation www.glencore.com/who-we-are/our- systems. All figures stated in this values/policies/ This report includes information report represent the latest available and data from our industrial and There is a list of our current data unless remarked upon in the text. marketing activities, including only associations and memberships assets where we have operational Implementing the Intergovernmental at www.glencore.com/assets/ control, and excluding investment, Panel on Climate Change (IPCC) sustainability/doc/2015-List-of- trading and holding companies. global warming potential (GWP) associations-and-memberships.pdf We exclude environmental data from measures, according to the Panel’s our warehouses and silos, ports Fifth Assessment Report (AR5), has and offices as their contribution is required restatements. insignificant, contributing less than 1% to the relevant indicators.

Tweefontein coal mine, South Africa

Glencore Sustainability Report 2015 21 Governance Governance

Climate change position statement & scenario modelling strengthened

Read more on page 47

Operational grievance Pilot of our scorecard to mechanisms reviewed $15.1 billion to ensure transparency, assess the shared value accessibility and we create for society spent with alignment with the local suppliers UN Guiding Principles

Read more on page 47 Read more on page 51 Read more on page 48

In this section

46 Community engagement 47 Creating value for society 50 Human rights

Minera Alumbrera copper, gold and molybdenum mine in Argentina supports agribusiness activities as part of its socio-economic development programme projects run in the nearby communities

Glencore Sustainability Report 2015 45 Society

Society continued...

Community engagement

Approach registers and dedicated offices within local communities. We are committed to building and maintaining All concerns received through these mechanisms are constructive, lasting relationships with our host regularly reported to senior operational and departmental communities and other local stakeholders. management, and to the Board HSEC Committee on a quarterly basis. All complaints and grievances are There are two elements that we consider when dealing with registered and investigated; we let complainants know society. The first is our impact on our host communities and results and any follow-up actions in culturally and locally wider society; the second is any risk to our business from appropriate manner. societal expectations and the political landscape. We require that our assets identify their stakeholders, taking particular In 2015, we received 1,742 complaints from our surrounding care to determine vulnerable groups, such as women, communities. We are currently reviewing our complaint children and indigenous people. topic categorisation to find the indicators that will be most meaningful for stakeholders, but the majority of complaints To help us consistently measure and report on our socio- dealt with lack of access, and damage, to property; noise; economic contributions, we have developed a socio- odours or fumes; water; and dust. economic contribution scorecard. All our assets must carry out community perception Stakeholder dialogue surveys every three years, to check on the effectiveness of their engagement strategies. Our Group community & stakeholder engagement policy requires our assets to develop transparent, constructive and Managing operational changes inclusive relationships with their host communities. The challenging financial climate has meant we have Each asset must complete a stakeholder assessment, needed to reduce production or temporarily suspend covering all stakeholder circumstances, needs and concerns, operations at certain assets. We are working closely with as well as potential impacts, risks and opportunities for the local communities to minimise loss of livelihood and that asset. From this assessment the asset must design other negative consequences. We also see this period as an engagement strategy, which may include procedures an opportunity to review our community development for information sharing, consultation and collaboration. programming to ensure its continued authenticity and This strategy is aligned with the asset’s business objectives effectiveness. We are working closely with our stakeholders and changes to its lifecycle, as well as local concerns in this area. and the broader socio-economic situation in the region. Senior management at each asset are aware of progress in implementing these strategies, which we also report on to the local communities involved. We require assets to review the strategies at each stage of their lifecycle to ensure that we continue to be aware of stakeholder priorities and needs. We provide our stakeholders with information in a wide range of ways, tailored to the local context, that vary across the Group. These include radio broadcasts, site publications, regular town hall meetings, and individual meetings with the community. We also have mechanisms to receive concerns, including free mobile SMS hotlines, complaints

Community complaints (2013–2015)

2,000 1,742 1,481 1,500 1,213 1,000

500

0 2013 2014 2015

Creating value for society

Approach identified performance highlights that can be found in the Our business activities make a significant contribution regional sections towards the end of this report. to the national and local economies in which we operate. Going forward, we plan to combine the scorecard with our The most significant derive from employment and existing community and stakeholder engagement systems. procurement, but we try to ensure that we maximise This will ensure a balanced understanding of how our contributions from throughout our value chain. development efforts affect our assets, both positively and Our aim is to minimise dependency on our operations, and negatively, and support management decisions on the promote healthy, sustainable communities with diversified design of asset-level community development strategies. and resilient local economies. This is particularly important The scorecard currently focuses on understanding the as changing market conditions may continue to affect tangible results of our investments, but over time, the data our business. collected will give us a better understanding of how our development activities affect local economies, supporting Socio-economic contribution our objective to deliver shared value for both Glencore and our host communities. Finally, we plan to make the In 2014, we began to develop tools to improve and scorecard more flexible, to reflect local societal specificities, systematise our understanding of our socio-economic particularly the presence of various vulnerable groups. contributions. These tools will help us improve our management of contributions to our host regions. Our work Our most significant economic contribution to our host drew on external knowledge as well as our own internal countries comes from employment, sourcing goods and expertise from multiple regions, including countries with services, and the payment of taxes and royalties. both developing and established regulatory environments. Payments to governments During 2015, we developed a set of metrics for use with our data collection and performance management systems. We pay all relevant taxes, royalties and other levies in We piloted these metrics in Zambia and across our amounts entirely determined by the legislation of relevant operations in Australia to test their relevance. We also tested national, regional or local governments. We strongly them externally by submitting them to external peer review support transparency in the redistribution and reinvestment through development specialists. of these payments and are active participants in the Extractive Industries Transparency Initiative (EITI). The approach includes a scorecard of 10 KPIs, selected We comply with the EU Accounting and Transparency to help us understand and communicate how the full Directives; in line with those provisions we will publish spectrum of our activities contributes to local economies. separate annual reports detailing material payments Our 2015 pilot included the launch of a Group data made in 2015 to governments, broken down by country collection process. This is still being refined, but it has and project.

Economic value added in 20151,2 Africa (exc. South South North South Rest of the $ million Group Africa) Africa Australia America America World Revenues3 218,971 3,341 1,786 11,402 35,547 15,557 151,338 Payments to suppliers (operating costs)4 210,954 3,286 1,510 9,424 34,289 14,230 148,215 Economic value added 8,017 54 276 1,978 1,259 1,327 3,123 Royalties and taxes5 4,507 659 153 1,517 396 1,106 676 Employee wages and benefits6 5,638 397 294 1,856 874 911 1,305 Payments to providers of capital7 3,212 416 101 334 39 308 2,014 Community investment 94 31 5 5 5 14 34 Capital expenditure 4,475 1,161 156 1,241 554 802 560 Economic value contributed (9,908) (2,610) (433) (2,975) (609) (1,815) (1,465)

1 For presentation purposes, all figures in this table have been rounded to the nearest unit. 2 In line with the requirements of the EU Accounting Directive, details of payments to governments will be published in a standalone report; some numbers stated above may differ to those in the standalone report, as this will use the definitions required by the directive. 3 Revenues include sales, intercompany sales, and other income. 4 Operating costs are all costs of goods sold, excluding salaries, employee wages and benefits; community investments noted separately. 5 Total net refunds from government on VAT, GST, sales tax and excise duties not included; this amounted to $1,854 million. 6 Employee wages and benefits exclude all contractor-related costs; these are shown in operating costs. 7 Payments to providers of capital consist of dividend payments and interest expenses. Provider payments do not include any principle repayments of loans.

Glencore Sustainability Report 2015 47 Society

Society continued...

During 2015, the tax and royalty payments made by our Local procurement industrial and marketing activities was over $4.5 billion. We use local suppliers whenever we can, to reduce our Our 10 highest payments made to governments this costs and provide our host communities with alternative year were: employment opportunities. Our development of local procurement bases also helps our host governments to fulfil Payments to governments by country (2015) their development objectives. In 2015, we spent $15.1 billion (38% of total spend) with local suppliers. Country Payment ($ million, excluding VAT) Some of the regions where we operate lack strong local Australia 1,517 businesses. Our community and procurement teams work Argentina 631 together to identify needs and develop support programmes for local businesses, to help them meet our quality Democratic Republic of Congo 532 standards and our expectations with regard to conduct. Canada 354 We want to help these businesses grow and become nationally and even internationally competitive. Colombia 216 Kazakhstan 189 Enterprise development South Africa 153 We work to support and promote businesses based close to our assets to drive local economic diversification. Peru 124 Our approach varies from region to region, but can include: Zambia 106 • Encouraging our large international suppliers to build Chile 35 partnerships with local businesses

NB: Total net refunds from governments on VAT, GST, sales tax and excise duties, • Financing or constructing business parks and centres to amounting to $1,854 million, are not included. host local entrepreneurs and support their growth • Training for small businesses Local employment • Programmes targeting local businesses, to help them meet A key contribution to socio-economic development is local and international quality standards employment, both directly and via contractors. To support local markets and provide further economic uplift, we invest We work with local government agencies to support significantly in workforce development, as well as offering training and help develop and implement business plans. our host communities training for non‑mining jobs. In 2015, In one example, Prodeco, our coal asset in Colombia worked 78% of our workforce were local residents, as were 63% of with a local mayor to establish an entrepreneurship centre, our managers. which has trained 350 people since September 2015. We emphasise diversity in our training initiatives, particularly given our own limited capacity to offer additional employment in the current economic climate. We seek to work with local governments, education authorities and community representatives to identify skill gaps and find the best ways to meet the needs and expectations of our stakeholders. We fund and operate training centres and programmes around the world that include complete secondary education, as well as artisanal skills for the mining sector and elsewhere. We are committed to employing locally wherever possible.

Infrastructure Many of our operations are located in remote and In 2015 underdeveloped areas; here we can contribute by sharing infrastructure, such as roads, water and electricity, with our • 78% of our workforce were local residents, host communities. This will grant local people safer and faster access to other towns and markets, meet local water as were 63% of our managers needs and facilitate access to education and healthcare. • We spent $15.1 billion with local suppliers Community development Our community development programmes are an integral • We supported over 7,300 entrepreneurs part of our community and stakeholder engagement based close to our operations strategies. They help to further improve the prosperity and resilience of our host communities by supporting • We spent over $134 million on shared access to basic services, such as education and health for infrastructure; our most significant the vulnerable and under-served groups, such as children, women, and groups affected by illness and conflict. investments each year are in power (over $68.5 million), roads (over $56 million/ around 1,000km in 2015) and water processing and distribution (over $5.6 million)

Community investments by region (2015) $ million

Africa

31 South Africa 34 Australia

5 North America 5 14 5 South America

Rest of the world

Community investments by type (2015) $ million

Capacity building

25 Environment 40 2 Health Identi ed local 27 or regional need

Glencore Sustainability Report 2015 49 Society

Society continued...

Human rights

Approach Our general approach is aligned with the International Labour Organization (ILO) Core Conventions and the Protect, Respect and Remedy framework from the UN Guiding Principles on Business and Human Rights (UNGPs). It is outlined in our Group human rights policy and overseen by our Board HSEC committee. The UNGPs have three requirements for companies to demonstrate that they are fulfilling their responsibilities. We meet these requirements as follows:

UNGP requirement Glencore commitment

Express a commitment to human Glencore’s commitment to human rights is stated in our Code of Conduct, which is clearly rights through a policy statement. communicated to all employees and contractors.

Perform human rights due diligence Our operations conduct risk assessments at key phases of their lifecycles. The assessments to identify, prevent, mitigate and may cover issues related to labour and workplace, use of security, our business partners, and account for potential human rights interactions with stakeholders and vulnerable people. The risks are logged in the operational breaches. risk register; progress in addressing them is reported to senior management and the Board as appropriate. In dealing with our business partners, we expect that they meet the requirements of our Code of Conduct and Group human rights policy. In particularly sensitive cases, such as in the selection and appointment of security contractors for our assets, we review their backgrounds to ensure they have no history of involvement in human rights breaches.

Provide remediation where We expect our people to avoid complicity in human rights breaches and to uphold international business enterprises are identified standards at our assets, regardless of location or function. as having caused or contributed Our operations have grievance mechanisms that enable stakeholders to raise concerns without to breaches of human rights. fear of recrimination. In addition, our Group internal reporting mechanism is available to stakeholders who wish to escalate their concern. We investigate and assess all concerns reported through these mechanisms, and report back to the complainant on the results of the review. In 2015, we reviewed the approaches used by assets to design their individual complaints and grievance management mechanisms, to ensure consistency with the criteria supplied by the UNGPs. We will be rolling out guidelines in 2016.

Security and human rights • Track the human rights record of any potential partner, Our Group human rights policy requires our assets to including public security forces, paramilitaries, local and conduct risk assessments for conflict and security concerns. national law enforcement, and private security firms; and If these risks are identified, our assets must align their consult with other companies, government officials and practices with the Voluntary Principles. At these assets, we wider civil society to share their experiences with private have worked to: security firms • Establish a formal agreement with private and public We developed guidance for this process in 2014, covering security providers, which states our expectations for the deployment, conduct and performance monitoring for conduct of personnel deployed at our assets and agrees a both public and private security providers. We have mechanism for incident investigation and escalation distributed the guidance to our security, compliance and community relations departments to be used as a master • Develop a locally-appropriate approach to training checklist; individual assets may need to include additional for all security personnel, to ensure understanding measures depending on their local conditions. The guidance of international human rights standards and our specifically requires assets to report any concerns with expectations for their conduct (this may be carried out public security providers to the appropriate local authorities, by our personnel or via third parties with a mandate to and to collaborate with any subsequent investigation. engage with local peacekeeping forces, and will typically address issues such as use of force, use of equipment and Further to this, in 2015 we reviewed our Group risk conduct in situations of public unrest) framework to reflect the risk of security-related human • Implement ongoing performance monitoring through rights abuses. To ensure responsible security management supervision by our security staff and regular meetings is embedded in our broader efforts to respect human rights, with host communities to identify and discuss we have also reviewed our grievance mechanism design any concerns across the Group to ensure these mechanisms are fully accessible to local communities.

In March 2015, we were admitted to the Plenary Group of Managing grievances and complaints the Voluntary Principles on Security and Human Rights. We require our assets to operate grievance mechanisms, to We look forward to our participation and the opportunity receive and address concerns from external stakeholders. to strengthen our approach to security management Depending on the location and context of the asset, these through dialogue and sharing of leading practice among mechanisms may range from informal complaints channels the Group’s members. to formal dedicated grievance mechanisms. Channels for In 2015, 1,675 security officers received human rights communication include dedicated phone lines, complaints training at our operations. registers at public places, SMS hotlines and the offices of assets in local towns. Where necessary, complaints Working with our business partners are recorded with witnesses present, as are the results The standards we expect of our suppliers are detailed in our of investigations. Code of Conduct, global anti-corruption policy and Group Further to this, in 2015 we reviewed our grievance human rights policy. These comply with International mechanisms to ensure consistency and alignment with the Council on Mining and Metals (ICMM) principles and UNGPs. As a result, we created internal guidelines on the international standards including OHSAS 18001, the ILO general principles and specific considerations that assets conventions and the UNGPs. must consider when designing or reviewing a grievance and Our assets consult regularly with their host governments complaints mechanism. and local communities about the impact of their security The guidance focuses particularly on accessibility, and arrangements. We also monitor private security providers local stakeholders’ awareness of the mechanism, as well to ensure they operate in a manner consistent with as the reporting and investigation of all complaints. our standards. The sophistication and formality of each grievance While some of the countries where we work have a higher mechanisms is determined by a risk assessment that risk of security-related human rights breaches, we expect considers dimensions such as existing legal frameworks our people to avoid complicity and uphold international in the area of operation and existing or future operational standards everywhere. If security risks are identified, we impacts on host communities. screen our security contractors’ human rights performance The guidance will be rolled out in 2016. and their ability to comply with our policy. We also ensure we have contracts that reference the Voluntary Resettlement Principles, and memoranda of understanding that state our We seek to avoid resettlement wherever possible. When it commitment to upholding human rights. cannot be avoided, we proceed in accordance with the International Finance Corporation (IFC) Performance Engagement with vulnerable groups Standard 5: Land Acquisition and Involuntary Resettlement. Some of our stakeholders have faced economic and social Throughout, our priority is to ensure that all affected discrimination in the past. These may include indigenous stakeholders have full participation. Following any people, women, children, disabled and elderly people, and resettlement, we seek to ensure the communities involved victims of conflict. Wherever we operate, we look for these can maintain productive livelihoods through ongoing groups during our stakeholder assessments and determine monitoring. We undertook this process in 2015 with the the most appropriate ways to engage with them. We try to Plan Bonito community, near our Calenturitas coal mine in understand and respect their religious, cultural and social Colombia, which we resettled in 2014. In 2015, we conducted concerns, and identify opportunities for their inclusion ongoing resettlement activities at five sites: Goedgevonden, and advancement. Ulan, Rolleston, Wonderfontein and Calenturitas.

Engagement with indigenous people Some of our assets are located on or near the traditional lands of indigenous people. We have formal agreements at a number of these, including indigenous land use agreements (ILUAs) in Australia and impact benefit agreements (IBAs) in Canada. Wherever we work, we engage in open and continuous dialogue with indigenous communities to understand their culture, views and aspirations. This helps us work with them to minimise our impact and maximise the benefit we bring to them. Our policy and approach are aligned with the ICMM Position Statement on Indigenous People and Mining.

Glencore Sustainability Report 2015 51 Environment Environment

Strategic water 18% 0 management catastrophic, major of total energy use framework developed or moderate from renewables environmental incidents

Read more on page 55 Read more on page 57 Read more on page 54

In this section

54 Environmental management 55 Water 57 Energy and greenhouse gas emissions 59 Land management 61 Waste management

Harvesting at Balaklava, Australia

Glencore Sustainability Report 2015 53 Environment

Environment continued...

Environmental management

Approach In joint ventures where Glencore does not have operational Our Group environmental policy is based on both control, we seek to influence our partners to adopt policies international and industry-specific environmental and procedures similar to ours wherever possible. We may standards. It follows the plan-do-check-act method. choose to terminate contracts with partners who do not The policy requires our assets to undertake detailed risk fulfil this expectation. assessment reviews, identify appropriate mitigation actions, and determine the capital expenditure required. Our assets Environmental incidents maintain environmental management plans based on these Our activities involve the use, transport and storage of large reviews, which focus on: quantities of both hazardous and non-hazardous materials. We also operate facilities where operational failures could • Maintaining the integrity of our facilities to avoid result in incidents with the potential to cause significant environmental incidents harm to the environment or surrounding communities, • Efficient resource use as well as damage our reputation. • Preserving protected areas and biodiversity We are committed to eliminating material environmental • Closure planning and rehabilitation incidents, and incurring no fines, penalties or prosecutions. Assets update these plans at each stage of their lifecycles, We have a five-level incident classification scheme, from and incorporate them into overall risk registers and catastrophic (category 5), through major, moderate and management plans. minor, to negligible (category 1). We also report and record Working from Glencore’s HSEC management framework, high potential risk incidents (HPRIs): events that could have we require our industrial assets to implement resulted in a serious environmental incident. The Board environmental management systems that include standard HSEC Committee reviews any category 4 or 5 incident with elements such as: the relevant senior management teams and shares any learnings across the Group. • An environmental policy We reported no moderate, major or catastrophic • Planning, implementation and operation environmental incidents in 2015. • Measurement, recording and evaluation In 2015, we paid $231,643 in environmental fines, compared • Review and corrective actions and to $790,031 in 2014. continuous improvement In addition, 39% of our industrial metals & mineral assets have externally verified environmental management systems. As our business encompasses a wide range of operational activities across different geographical locations, it would be difficult to establish blanket Group environmental targets appropriate for every operation, site and project. Instead, we require performance management at a local level.

Partners In contracts with suppliers and contractors we seek to include minimum requirements for environmental management. We also participate in supply chains where we do not have operational control, including working with the third parties who ship and store our products. We engage with our customers, suppliers and service providers to limit the environmental impact of our activities throughout these chains.

Water

Approach Over the next two years, we plan to focus on: Water is an essential input for our industrial activities. • Developing and implementing water management We ship products over maritime and inland waterways; guidelines that are appropriate for our assets; each these products could contaminate the water if spilled. asset’s risk profile will determine the stringency of the In addition, many of our assets are located in water-stressed requirements that apply areas, with some in areas of extreme scarcity. Other assets • Identifying sites with high water-related risk must manage surplus water from rainfall or mine • Assessing the current water management practices dewatering. Concerns regarding the long-term availability at those high-risk sites to identify potential areas and quality of water, and security of access to water, have for improvement significantly increased as a result of changes to demography and climate. • Introducing an appropriate water balance tool to help high-risk assets use a standard approach to reporting This means that our material considerations with regard to water use water are: • Collating existing case studies on sound water • Ensuring that all users have access to high quality water management practices (eg flood management, water diversion, water efficiency methods and technologies) • Ensuring that we preserve the quality and availability of from around the Group; sharing the results amongst local water sources our assets • Protecting the maritime and inland waters that we use for transport In 2015 we aligned our water indicators, metrics and definitions with the Water Accounting Framework (WAF) Our aim is to responsibly manage our water impact without of the Minerals Council of Australia. We will begin to apply material adverse impact on the quality and quantity of any these in 2016; we will use them to develop a more detailed water body, and without compromising other users’ access water balance model. This will help us benchmark our to water. progress more clearly against the wider industry and help We report to the CDP water disclosure programme identify areas for operational improvement and increased every year. efficiency across our business. At assets where there are significant risks relating to water Water scarcity and its availability we require water management plans that A 2014 analysis of our assets’ locations showed that around cover each stage of the operation’s lifecycle. Assets develop half of our operations are located in “water stressed” their plans in collaboration with local communities and regions; some of these were classified as regions of other stakeholders in the catchment area. They will also “scarcity” and others as regions of “extreme scarcity.” These develop water intensity and water efficiency targets. definitions were taken from the World Business Council Each asset’s water efficiency measures vary according to for Sustainable Development water tool. This analysis local needs, but may include: was the basis for our Group water strategy, which had five primary objectives: • Reducing water loss via evaporation • Switching to lower-quality water sources Identification and assessment of our material water impacts, wherever possible risks and opportunities 1. • Treating and reusing operational waste water 2. Gaining an understanding of our water footprint • Researching new sources of water (eg desalination) • Deepening water storage dams to improve Development and implementation of water management storage capacity 3. plans covering each of our assets’ lifecycles to avoid, minimise or mitigate the impacts and risks • Establishing water efficiency committees • Improved tailings management (eg setting targets for Improvement of our water management performance, water recovery from tailings) 4. including identifying and setting water-related targets • Employing best-practice agronomic techniques that Ongoing engagement with significant stakeholders and improve water efficiency 5. public reporting on our progress

Glencore Sustainability Report 2015 55 Environment

Environment continued...

We plan to run a pilot project to test a catchment-based We maintain a fleet of owned and chartered vessels; those approach to water management. A catchment is a land area we own adhere to the appropriate requirements to avoid through which all surface and subsurface water drains spills and water contamination. Our chartered vessels are into a single body of water, as well as the downstream vetted in accordance with our chartering standards. We use water affected by the land area’s discharge. In line with double-hulled vessels as a key guard against leakage. In the the International Council on Mining and Metals (ICMM) unlikely event of a spill, we have emergency response plans recommendations, we are taking a catchment-based to minimise damage. approach as this looks at the interconnected activities and Our operational and maintenance procedures are aligned issues in the catchment as a whole, rather than considering with relevant international standards, including the them all separately, or only considering a specific site’s OCIMF/ICS guidance and MARPOL regulations and input/output balance. It encourages organisations to the Ballast Water Management convention for all ballast consider how competing demands on water resources can water exchanges. create pressure and potentially lead to conflict. The results of the pilot study will provide the scope for rollout across In 2015 we recorded no significant incidents related to water. the Group. We also work with local communities, authorities, agricultural and other industry users to create water use strategies at many assets. These are designed to ensure sustainable, equitable access and robust water management Water withdrawn (2013–2015) by all stakeholders in the catchment area. They cover million m3 9961 efficient water use, water reuse/recycling, responsible waste 1,000 water disposal and maintenance of equipment that could 980 affect water quality. 965 960 952 For example, some of our underground mines require continual dewatering. We work with local communities and 940 utility providers to ensure that this water can be reused 920 locally. Our industrial sites are also working to recycle and 900 reuse water wherever possible, to reduce their consumption 2013 2014 2015 of potable water. 1 Restated primarily due to improved estimation methods at three sites Preventing water contamination Water withdrawn by region (2015) Our waste water treatments vary depending on the % requirements of the sector and region, but usually include pH neutralisation and the removal of heavy metals, suspended solids, oils and greases. We monitor the Africa 17 quality of the water we discharge as it leaves our assets 30 3 South Africa as well as within the water bodies it enters, such as rivers 9 and estuaries. Australia 13 North America We are implementing new technologies to help minimise or 28 eliminate uncontrolled water discharge. In one example, we South America have constructed a water treatment plant at a closed site in Rest of the world British Colombia as our water storage capacity was reaching its limits. The plant uses lime neutralisation to create high density sludge (HDS), a non-hazardous waste that we Water discharged (2013–2015) dispose of with our tailings. million m3 1,000 970 938 950 900

850 815 800 750 700 2013 2014 2015

Energy and greenhouse gas emissions

Approach Greenhouse gas emissions 1 Many of our assets have significant energy requirements; it million tonnes CO2 38 37 is a major element of our operational costs across the Group. 40 36 We work continually on improving our energy efficiency; 30 our commodity businesses have bespoke energy efficiency 20 plans and carry out regular energy audits. 10 In 2015 we generated 37 million tonnes of Scope 1 and 2 emissions, compared to 36 million tonnes in 2014. Our net 0 total energy usage was 242PJ, the same as in 20142. 2013 2014 2015 25 of our sites emit 70% of our total Scope 1 and 2 GHG Scope 1 Scope 2 emissions; these sites are mostly located in Australia and 1 Scope 1 emissions are measured in CO2e South Africa. This group of sites is the primary focus of the study on carbon reduction and target setting that we carried Top 25 sites Scope 1 & 2 GHG emissions by department (2015) out in 2016. %

Reporting changes Aluminium 6 8 This year the Greenhouse Gas (GHG) Protocol guidance 7 Coal defining Scope 2 emissions has changed, incorporating location and market-based elements. The definition change 35 Copper 36 has led us to report three separate values for this indicator Oil in 2015. We report on the first value, used in this section’s 4 4 charts, to align with our previous external reporting; it is Ferroalloys based on the old definition, which uses grid emission factors Nickel with no emissions attributed to contractual purchases of renewable electricity. Zinc We include the other two values in the databook connected to this report, available at www.glencore.com/ Energy usage sustainability/. The second value is the new “location- petajoules 300 based” definition, which applies grid emission factors to all 238 2422 242 purchased electricity, regardless of contractual purchase arrangements for renewable electricity. The third value is 200 the new “market-based” definition, which details GHG 100 emissions from contractual arrangements; supplier-specific emission factors have been applied when relevant and 0 available, but where they are not, the country’s residual or 2013 2014 2015 grid emission factor has been applied. The International Energy Agency and a number of governmental bodies have Direct energy Indirect energy also provided updates for grid emission factors. 2 Restated due to a change in measurement units at one asset since 2014 In addition, our figures for GHG emissions from fossil fuels now consistently include methane and nitrous oxide as well Renewable energy share of total energy use % as carbon dioxide (CO2). These updates have required us to 18% restate previous figures. 20 17% 15 11% 10

0 2013 2014 2015

Glencore Sustainability Report 2015 57 Environment

Environment continued...

We use renewable energy sources where we can. We have flares installed at those Australian underground In Kazakhstan, Kazzinc operates the Bukhtarma coal mines with the necessary supply and concentration hydroelectric plant, which has nine 75MW turbines with a of methane. In 2015 these sent more than 60,000 tonnes total generating capacity of 675MW. Bukhtarma generated of methane to flares and over 20,000 tonnes to coal mine around 3 billion kilowatt hours of electricity in 2015, waste gas power stations, resulting in the abatement of covering up to 68% of Kazzinc’s electricity requirements. over 1.4 million tonnes of CO2e. This is a 39% reduction If this energy were generated by a conventional fossil fuel- compared to 2014, as a result of: based power plant, it would have released the equivalent • Cessation of mining at Ravensworth mine of 1.5 million tonnes of CO2. In addition, almost all the electricity used by our assets in the DRC and Zambia, which • Decommissioning of the United facility run some of the Group’s largest operations, is generated • Very little gas being drawn at Teralba due to raised water from renewable energy (hydropower). levels in its decommissioned underground mine We use waste gas from our coal mines to supplement • Reduced methane concentration and volume in gas power generation at a number of our Australian operations. drainage at Newlands and Oaky Creek Particular examples are Oaky Creek (installed capacity • Delays in production at Bulga that reduced post-mining 24MW), Bulga Underground (9MW), Tahmoor (7MW) gas drainage and Teralba (4MW): 44MW installed capacity in total. An additional 15MW is due to be commissioned at Oaky Creek in May 2016.

Below: Environmental monitoring at our San Juan de Nieva zinc asset, Spain

Land management

Approach In addition to continually refining our existing technologies, Glencore is a significant land manager, owning over in 2016 our Australian assets will increase the percentage of 500,000 hectares of land and leasing over 1.7 million around new crop varieties, which give a bigger yield, in their crop the world. mix, as well as trialling some new varieties. Our Southern Australian farms are increasing the proportion of legumes We respect legally designated protected areas and adhere in their crop rotations, as these naturally create nitrogen in to associated regulations; we do not explore or mine in the soil, reducing the nitrogen fertiliser required. We are World Heritage areas. also planning to roll out variable rate technology to our Our assets undertake responsible land stewardship at fertilisation methods, having seen good results in trials each stage of their lifecycles; this not only reduces our during 2015. operational risk, but minimises our liabilities when our mines close and influences our legal and societal licence Biodiversity to operate. Our assets incorporate biodiversity considerations into their environmental impact assessments, along with any We make efforts to recognise the cultural heritage of local risks that our impact on biodiversity may have for local indigenous people when planning our operations, as we communities. If significant biodiversity impacts cannot understand that they may have a unique connection with be avoided or mitigated offsetting measures are applied. the land. We disseminate scientific data and promote the latest biodiversity assessment practices wherever possible. Rehabilitation and closure management We support the development and implementation of We require each individual asset to have a closure plan to scientifically sound, inclusive and transparent procedures ensure a responsible exit. This plan must be continuously that integrate land use planning, biodiversity, conservation maintained, including appropriate financial provisions. and mining. Our assets develop their closure plans in collaboration with their local communities and ensure that they monitor the Areas identified as having high biodiversity value include societal risks and opportunities associated with closure. a mining site belonging to Prodeco in Colombia, which is located near the forest reserve of Serranía de los Motilones In addition, our mining assets continually rehabilitate the (a protected area). areas they disturb, ensuring that the land is restored to a state that is suitable for the final land use agreed in the Our smelting operation in the Philippines is close to a original mining permit. Each asset creates a comprehensive mangrove forest; we have constructed a protective dike management plan before operations begin, which identifies enclosure and maintain a fish sanctuary in partnership with each year’s success factors and ensures they can be the Department of Environment and Natural Resources. measured and monitored regularly. Part of our US alumina operation is located near the We generally try to use the topsoil removed at each site Aranasas Federal Wildlife Refuge, the National Estuarine immediately; when this is not possible, we store it for future Research Reserve and protected wetlands. reuse. We keep records of what each area looked like before we disturbed it, to restore topographical features where possible. Where appropriate we identify threats to local biodiversity and help protect affected species. We engage with local communities to identify appropriate post-mining land uses and try to make them possible. Land disturbed vs land rehabilitated to date Agricultural land hectares Our agricultural assets make continual efforts to minimise 150,000 their environmental impact and maintain the long-term 111,431 117,724 94,625 productivity of our arable land. They consult the best 100,000 available agronomic consultants, using precision farming methods that include no-till farming, controlled traffic 50,000 27,462 27,465 27,412 farming and variable rate technology. Other practices, such as windrow burning, are used to decrease reliance on 0 insecticides, fungicides, herbicides and similar products. 2013 2014 2015

Total land disturbed Total land rehabilitated

Glencore Sustainability Report 2015 59 Environment

Environment continued...

Our Australian Rolleston site is partially located in the protected Brigalow Belt Bioregion, a semi-evergreen vine thicket, brigalow and bluegrass ecosystem. Mount Isa Mine in Australia has a regional water source, Lake Moondarra, located within our mining lease, approximately 10km from mining operations. The lake is recognised under several agreements as having conservation value related to migratory birds; it is listed as a wetland of national significance. Our Koniambo operations in New Caledonia are located in an area of high biodiversity value where 80% of the plant species are endemic, as well as most of the reptiles in the mine site area. In addition to undertaking progressive site rehabilitation, we produced a detailed biodiversity management plan in 2007, followed by a protected area management plan in 2011 and a rare species management plan in 2014. Our objectives are to avoid net loss of biodiversity, maintain large conservation areas onsite (approximately 825 hectares) that minimise the risk of fire and invasive exotic species, and perform in-house research into these rare species. Our Mutanda operation, in the DRC, is located in the Basse-Kando Hunting Zone, at a distance of 5km from the Kando river. Mutanda seeks to limit any impact of its operations through diligent environmental management and developing and implementing progressive rehabilitation plans.

Below: Overseeing water management at Collahuasi copper mine, Chile

Waste management

Approach In 2014, we conducted a survey of all Group tailings facilities, Our assets continually review their waste management supervised by the Board’s HSEC Committee. The survey procedures and identify opportunities for improvement, investigated the key characteristics, risks and controls of our to minimise the impact of the waste we produce. tailings facilities, as well as their design and construction. Glencore’s corporate sustainability team analysed the results Mineral waste and presented the key findings to the HSEC Committee, which required all surface tailings facilities to undertake an Most of the waste that Glencore generates is mineral and independent inspection no less than every three years. includes tailings, slag and rock. Our assets have rigorous management systems in place to dispose of waste while Our 2016 assurance programme will specifically include preventing environmental contamination. We continuously a review of all priority tailings facilities by subject matter review our waste management processes, and identify and experts. These assessments will be peer reviewed. We have implement opportunities for improvement. We reuse as much also reviewed and updated the critical controls for tailings waste as possible. For example, we use waste rock to backfill facilities in our RiskManager tool, to help our assets develop our mines, and fill roads with non‑hazardous tailings. catastrophic hazard management plans.

In 2015 we produced 2,084 million tonnes of hazardous and Air emissions non-hazardous mineral waste, 7% less than 2014. We recycled or reused 13 million tonnes of mineral waste. We comply with relevant regulatory limits and international standards wherever we operate. Our metal and coal assets generate tailings (residues of mineral processing), which are stored in purpose-built Our metallurgical smelters emit sulphur dioxide (SO2), tailings storage facilities. These are specially designed dust and nitrogen oxide (NOx) as both stack and fugitive ponds filled with tailings and water; over time, the water emissions. Stack (or point) emissions emanate consistently evaporates while the tailings settle, gradually filling the dam. from a fixed source (such as a smelter furnace), whereas At this point, the dam is capped, sealed and rehabilitated. fugitive emissions emanate irregularly from diffuse sources. Our tailings facilities are monitored continuously to Our open-cut mining assets emit dust (also referred to as ensure integrity and structural stability. Flooding and particulate matter or PM) during excavation and when seismic activity are the main natural phenomena that may moving material. We monitor dust levels within affected affect them. Our assets evaluate natural phenomena and communities and minimise dust in a number of ways that incorporate these considerations into their tailings facility includes dust suppression, construction of berms to prevent designs where relevant. dust travelling to communities, optimising our blasting activities, watering our haul roads and using protective Mineral waste coatings on product and waste storage facilities. million tonnes

1 26 assets began implementation of new infrastructure or 2,500 2,135 2,244 2,084 programmes to reduce fugitive dust emissions in 2015, mostly 2,000 within our zinc division. 14 assets, mostly from our zinc and 1,500 copper divisions, started initiatives to reduce stack emissions.

1,000 Three assets began new SO2 reduction initiatives. 500 0 2013 2014 2015

Hazardous mineral Non-hazardous mineral Emissions (SO2, NOx and dust) 1 Restated due to improved data collection thousand tonnes Mineral waste recycled 750 million tonnes 607

20 1 17 500 431 16 366 15 13 250 10 69 71 67 0 12 11 10 5 2013 2014 2015

0 SO2 NOx Dust (point source only) 2013 2014 2015 1 Restated due to improved estimation methods at two sites

Glencore Sustainability Report 2015 61 Regional reports Regional reports

In this section

64 Africa 74 South Africa 82 Australia 92 North America 100 South America 110 Rest of the World

Overseeing operations at Impunzi coal complex, South Africa

Glencore Sustainability Report 2015 63 Regional reports

Our activities in Africa span a number of Regional reports: countries. We have assets in the African Copperbelt (Zambia and the DRC), oil operations in Chad and Cameroon, oil interests in Equatorial Guinea and Africa operations in Namibia and Burkina Faso. These employ a workforce of nearly (excluding South Africa) 29,000 employees and contractors.

In 2015: 54% of our Chad employees were local 2,231 people participated in our DRC co‑operatives, supporting over 22,000 dependents

73% $65 million spent on INGA II of Mopani’s mega‑energy project vendors are locally in the DRC in 2015 incorporated companies

Key

Operations Commodities

Offices Agriculture storage Copper Iron ore

Pacorini metals Agriculture port Zinc & lead Coal warehousing facilities & storage Nickel Oil Port facilities & storage Technology Ferroalloys Agricultural products

Oil infrastructure Alumina & aluminium

Casablanca Fujairah

Guellb El Aouj Dubai Askaf Jeddah Dubai Lebtheinia

Perkoa

Chad Oil Assets

Apapa Cameroon Oil Assets Abidjan Accra

Block O, Equatorial Guinea Block I, Equatorial Guinea Zanaga Kabanga (project)

Katanga Dar es Salaam

Chambishu Tanzania Mutanda Mufulira Nkana Lubumbashi

Sable Harare

Beira Beira

Walvis Bay Rosh Pinah

Maputo

KPIs 2013 2014 2015 Workforce 38,508 38,578 29,381

Fatalities 6 6 6

LTIFR 1.21 0.84 0.49

TRIFR 8.96 8.31 6.24

New cases of occupational diseases (per million hours worked) 0.24 1.25 0.15

Scope 1 GHG emissions (thousand tonnes) 338 423 793

Scope 2 GHG emissions (thousand tonnes) 3 3 3

Energy usage (PJ) 14 16 17

Water withdrawal (million m3) 149 149 161

Community investment ($ million) 35 30 31

Payments to governments ($ million) 346 575 659

Glencore Sustainability Report 2015 65 Regional reports

Africa continued...

Our people: safety As ever, the safety of our people was our top priority in 2015; we worked hard this year on the continuing implementation of SafeWork, our Group safety initiative. We have adapted its procedures to suit our host countries’ existing safety cultures.

A key feature of this adapted approach is the use of safety We also undertook a significant programme to implement conversations, where managers and supervisors are catastrophic hazard management, including risk encouraged to stop any examples of unsafe work or practice assessments and development of management plans. that they see, regardless of whether the workplace or Katanga completed fatal hazard protocol training for a workers are under their direct control. These conversations number of key hazards (energy isolation, working at height can range from an informal five-minute conversation to and in confined spaces, and mobile equipment) and are well a full meeting. The aim is visible felt leadership, with on the way to completing those outstanding. At Mutanda, a consequence management approach that combines we trained 4,232 people in the SafeWork principles, and mentoring, praise and reprimand. In 2015 an average of 342 completed baseline risk assessments and self-assessments supervisors at our Katanga operations conducted around on the fatal hazard protocols. 19,000 of these SafeWork conversations.

SafeMining at Mopani

In 2015 Mopani continued rolling out the SafeWork initiative; this was first introduced to our employees and local communities in 2014, under the banner of SafeMining. We disseminate SafeMining messages through internal memos, emails, notices, monthly newsletters, our intranet, management briefs and roadshows, at the workplace and in the community. SafeMining was introduced after we determined that a significant proportion of incidents leading to injury or loss of life could be avoided if all our people take responsibility for making safety a way of life in their own operational areas. In this way, the initiative seeks to eliminate the potential for catastrophic incidents, fatalities and injuries and prevent occupational diseases. Our long-term objective is to eliminate fatalities and occupational diseases, and achieve a lost time injury frequency rate (LTIFR) of less than 0.5. At the end of 2015, we had reached 2,357 workplace supervisors and 105 managers with various safety messages concerning SafeMining’s 12 fatal hazard protocols and nine associated life- saving behaviours. We also carried out training in a range of first aid and rescue skills for both employees and contractors. 1,916 employees and contractors were awarded competence certificates in first aid this year.

Kitwe’s emergency response call centre

In 2015, Mopani completed the construction and equipping of an advanced emergency communication and control centre (ECCC) at its Nkana mine in Kitwe, at a cost of $653,000. This was to improve the coordinated response to emergency situations at its operations, following the successful pilot of a satellite call centre at Mufulira in 2014. Located at Mopani’s corporate offices, the Nkana ECCC is our main emergency call centre. It holds up-to-date equipment such as an online intelligence system, which analyses all data received and expedites responses. The ECCC also houses various categories of life support mechanisms for surface and underground staff, to enable a prompt 24-hour response and provide critical care to accident victims within the “Golden Hour” (the period following a traumatic injury in which prompt medical treatment will most likely prevent death). A full team of mine rescue, medical and trauma, firefighters and hazmat responders is always on hand. Apart from ensuring effective centralised emergency event control, deployment and management, the ECCC will also help successful post-emergency investigations and reviews.

Advanced life-support ambulances

In 2015, Mopani acquired two advanced life support ambulances at a cost of $181,000. The two life-saving vehicles are stationed at our emergency communication and control centres (ECCC) in Mufulira and Kitwe, to ensure rapid response to emergency situations. The ambulances are instrumental in ensuring that all emergency victims have immediate access to advanced medical and first-aid services. They have built-in advanced life-support equipment that enables paramedics to offer critical care at incident sites before transportation to medical facilities. In 2015, 24 employees, drawn from a broad spectrum of emergency respondents that included firemen and medical staff, underwent intensive six-week training in basic paramedic life support skills. The ambulances are also available to members of the public involved in road traffic incidents in the Kitwe and Mufulira districts, as part of Mopani’s community development efforts.

Glencore Sustainability Report 2015 67 Regional reports

Africa continued...

Our people: health We work to identify and address potential health risks, both to our workforce and to the broader community. In Zambia and DRC, HIV/AIDS and malaria are major public health issues. The programmes we run to tackle these diseases have contributed to reduced death rates and less long-term ill health locally, reducing hospital attendance and lowering absenteeism at our operations. Our main focus is prevention, but the programmes cover care and treatment for those who need it.

Public health: Zambia Malaria in Zambia

Mopani’s HIV Care programme offers testing and treatment to its We refer to our malaria programme as integrated, because it not employees, their dependents and the local community. It is aimed only treats the infected but also addresses the main cause of the at increasing access to antiretroviral treatment (ART) and quality disease, by tackling mosquito breeding grounds and undertaking HIV-related care. preventative activities. Since 2004, we have enrolled over 18,000 individuals, of whom In Zambia, Mopani’s medical department runs health education 15,905 were enrolled on ART. AIDS-related deaths have reduced sessions on malaria prevention, treatment and care for its for HIV Care participants (from 225 in 2006 to 76 in 2015), and the employees and the local community. They train community number testing HIV-positive has declined from 39.2% in 2005 to support groups, comprising employees, their families and local 10% in December 2015. This is as a result of awareness campaigns residents, to assist with preventative activities. In the event of and voluntary counselling for both Mopani workers and the larger illness, employees and their families are diagnosed and treated community. These educational and support services are conducted at Mopani hospitals and clinics. by Mopani-trained peer educators; they include information for The incidence of malaria in Mopani catchments has reduced from people to keep seeking positive behavioural traits, voluntary 216/1000 population in 2000 to 12.45/1000 in 2015. This compares counselling and testing, and ongoing treatment. to the national incidence rate in 2014, which was 407/1000. One effective way to reduce HIV is preventing transmission from mother to child (PMTCT). The HIV testing acceptance rate among antenatal mothers in the programme increased from 41% Malaria incidence rates (2000–2015) in 2005 to 100% by December 2015. Encouraging men to become 300 involved in sexual reproductive health programmes increased their attendance from 0% in 2005 to 77% by December 2015. 250 Mopani’s medical department, which deals with the hospitals 200 and clinics run by Mopani, has previously pioneered treating 150 HIV+ mothers and their partners regardless of their white blood 100 cell count (an indicator of how well their immune systems are working). This maximises suppression of the virus in the mother, 50 which ultimately reduces transmission to the baby. The approach 0 has now been adopted as standard by the Zambian Ministry of Health. To date, transmission of HIV from mother to child has 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 reduced from 37% in 2005 to 0% by December 2015.

Public health: DRC

HIV/AIDS still carries a socio-economic stigma in DRC; legal In 2014 Katanga began collaborating with the nearby Mwangeji protection for sufferers is still in its early stages. The government hospital to help local people living with HIV/AIDS, educating has not yet started to promote voluntary testing widely or them in the importance of ART (provided by the hospital) and prominently; ART availability is also limited. helping them to develop income-generating activities suited to their medical condition. Our assets Katanga and Mutanda offer testing to their workforces and their families. They also support the DRC government’s national programme to tackle HIV/AIDS (referred to as “PNMLS”) by running a training programme for peer educators in local communities; this trained 32 educators in 2015. They also carry out awareness campaigns for local communities and high-risk groups, such as truck drivers.

Our people: workforce Falling commodity prices have led us to the difficult decision to suspend or curtail some of our activities in the DRC and Zambia. Production is due to resume in the DRC in late 2017; full production will resume in Zambia in early 2018. During this time, we will complete expansionary and upgrade projects, which will improve operational and environmental efficiency in the DRC and materially reduce operating costs in both regions.

We did not make these decisions lightly, and worked closely In 2015, Katanga ran a successful voluntary departure with our host governments and the labour unions at our programme; it covered many of the same activities, working assets to manage these processes. In particular, we provided with national and local government throughout the support to workers who have lost their jobs. In the first process. Employees were kept informed via regular forums. instance, we identified employment opportunities elsewhere Those who we were able to retain are still undertaking in the business where possible. In Zambia, where such training and schemes for skills development. opportunities were not available, we worked with labour The restructuring processes at our African assets were unions to offer voluntary departure programmes and completed in full agreement with local government and agree retrenchment packages that went well beyond local labour unions; to date, we have not experienced any legal regulatory requirements. In addition, our assets offered or community opposition at any of these locations. a range of benefits, including emotional and financial counselling, and training programmes. All retrenched employees also retained HIV/AIDS treatment for the rest of their lives and other benefits, such as healthcare and school tuition support, for certain periods of time.

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Africa continued...

Society & human rights Throughout our operations, we prioritise local contractors and suppliers. In Zambia, our copper asset Mopani has approximately 2,200 vendors on file, of which 73% are locally incorporated companies. In 2015, we spent around $844 million through nearly 600 contracts with these suppliers.

This focus on local procurement helps to reduce costs Mopani has created a number of platforms for collaboration and provide our host communities with employment with local businesses including both regularly scheduled opportunities outside of our operations. Our development and ad hoc liaison sessions with individual suppliers and of local procurement bases also helps Zambia to fulfil its supplier associations. We also contribute to capacity- national development objectives. building activities for local businesses, in collaboration with government agencies for small enterprise development. In addition to direct sourcing, we encourage foreign companies to form joint ventures with local businesses; the aim is to help local suppliers improve service delivery as a result of new equipment and skills transfer. Some of these joint ventures are now wholly owned and operated by Zambian entrepreneurs, such as ZINPRO Zambia and Redpath-Rig Resources.

Boosting local employment in the African Copperbelt

In certain poor regions with low levels of employment, we may find that local communities expect Glencore to contribute significantly to local employment. However, there is only a limited number of roles, even for those with skills suited to modern mine work. In 2014, Mutanda, our DRC copper asset, started a pilot programme called Wote Pamoja Tujenge Mugini (All together we build the village) to address this disparity. The programme focuses on identifying employment opportunities for people living around the mine. Community liaison officers conducted several sensitisation sessions with local communities to explain the initiative and promote participation. We provided flyers and CV templates in Swahili and helped people complete their applications. These forms became the basis of a personnel database for potential local employees. In 2015, we were able to connect 70 people from that database with employers from among our cleaning and construction contractors. This is in addition to the 336 local people directly employed by Mutanda.

Expanding the skill base of our host community

In 2014, our copper asset Mopani built the Mopani Central offer formal training in blasting qualifications and skills recognised Training Centre, a $15 million apprentice training centre, to train by the Technical Education, Vocational Entrepreneurship Training learners in various engineering and mining skills. We also use the Authority (TEVETA). centre to upskill our current employees and contractors. In 2015 The school also accommodates a fully-equipped first-aid clinic and we expanded the centre with a $6 million investment in mining control room for emergency response training purposes. simulation infrastructure, including a fully-equipped replica underground mine, to complement the existing engineering and Graduates of the training centre will be offered employment electrical facilities. at Mopani. In 2015, 190 engineering apprentices, mostly drawn from the local community’s high school leavers, received upkeep allowances, meals and accommodation and recreation facilities. The centre’s capacity is 314 students; all students enrolled will also be offered full sponsorship. 43 learners drawn from Mopani’s employees and contractor companies will begin training in 2016. In addition, 6,717 Mopani employees and 4,490 contractors took various refresher courses at the centre, along with 22 vocational students from local tertiary institutions. While the engineering students at the centre pursue long-term craft/trade qualifications, the mining simulator will initially offer short courses to our people. These include pipe laying, track laying, construction, cage tenders & attendants, loco operation, dump truck operation, utility vehicle operation, load haul dumper operation, drill rig operation and bolter operation, as well as first-aid & rescue skills. Once fully operational the simulator will offer professional courses on skills in basic operations and blasting, supervisory skills, management & leadership, health & safety, shaft construction and maintenance. The virtual reality training in explosives is considered a global leader; students will use the world’s largest touchscreen for marking and blasting training. The simulation allows the centre to

Alternative livelihoods for DRC artisanal miners

Our DRC assets are located in regions where artisanal and small- In 2015, the average revenue per person from growing crops grew scale mining occurs. This is mining carried out by individuals, using to $400 per season, from $75 in 2013. All participants have reached hand tools and basic extraction methods. It is often dangerous, at least self-sufficiency. Average yields have increased almost particularly as women and children sometimes take part. It also threefold, with the average revenue per hectare almost doubling. frequently involves theft or damage to our equipment; as such it is a The new average revenue from livestock varies greatly but has at material risk to our operations. We do not support artisanal mining, least doubled in most cases. Revenues are either re-invested in the nor process or purchase any material derived from artisanal mining project or used to supply essentials for residents, such as school fees, in the DRC. We have developed robust due diligence processes to healthcare and housing. ensure this material does not enter our supply chain. We have also started running programmes to keep children out of We engage with local communities, working to raise awareness of artisanal mining. In 2015, we ran a summer camp for 1,500 children the risks linked to artisanal mining, as well as promoting alternative from local communities, in conjunction with the local educational sources of employment. In 2015, our DRC assets ran 68 cooperatives authorities. This allowed us to engage with mothers to raise their offering a range of activities, including agriculture and farming, awareness of the dangers of artisanal mining, particularly for welding, sewing and carpentry. So far we have helped 2,231 people, children. We plan to run similar programmes going forward. who support around 22,310 dependents. 68% of the participants were women, with 10% being exceptionally vulnerable people like widows, people with disabilities and those living with HIV/AIDS. Half of those taking part in the cooperatives are ex-miners; 60% of their dependents are children, who have been able to stay in school because their families can now afford the fees.

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Bringing hydroelectric power to a region without stable infrastructure

Katanga and Mutanda, our copper assets in the DRC, are working on a major infrastructure project to generate hydroelectric power that both we and our surrounding communities will use. We have been working on the project, Inga II, for four years. We have invested $368 million in the project, with $65 million spent in 2015. We have also supplied technical expertise and resources, to refurbish the Inga II hydroelectric plant and turbines and upgrade transmission lines to allow access to power generated by a dam on the river Congo. Once fully ramped up, Inga II will supply 450MW of electricity. This will help to supply local communities as well as our operations.

Working with the Voluntary Principles in the DRC

Our copper assets in the DRC use private security contractors to Our assets have developed systems to implement the memoranda, protect their operations and their people. They also collaborate which include transparent compensation mechanisms. with the Mine Police, a section of the Congolese National Police We have a range of mechanisms to let local stakeholders with the specific mandate to secure mine sites. In addition, military communicate concerns; our assets publicise these mechanisms via forces ensure the safe transportation and storage of explosives, local radio, in posters, and community meetings. Security managers in accordance with national regulations. participate in community meetings to discuss any concerns As part of our implementation of the Voluntary Principles at these with security management. All complaints are recorded by our assets, we have started training in human rights and the Voluntary Community Liaison officers, with a tribal chief or other nominated Principles. Private security contractors receive human rights community leader present. Complaints are reported to senior training every year; in 2015 we trained 1,111 contractors and 258 operational management and investigated; complainants are employees. Our security departments conduct awareness sessions informed of any action taken. for the Mine Police, which cover our standards and expectations on The recent division of provinces in the DRC has delayed our human rights and the use of force. In 2015, 125 mine police officers operation’s participation in external forums this year. Katanga and attended these sessions. Mutanda currently participate in regular meetings organised In 2015, our assets also signed memoranda of understanding with by the new provincial authorities on security, communities and the Mine Police. These address our expectations with regard to artisanal mining. international standards on human rights as well as the Voluntary Principles. The memoranda also cover rules of engagement, our requirement for personnel background checks, and mechanisms for reporting and acting on concerns and potential breaches.

Local community investments in the DRC

In remote and developing regions we will often support local In the same year, Katanga contributed $1.6 million towards the communities by investing in infrastructure for their sole use, Lualaba bridge as well as investing an additional $400,000 in as well as healthcare and education. two wells for the sole use of communities in Luilu. Their direct beneficiaries numbered: 2,231 (community development); 25,000 In 2015 Mutanda contributed $680,000 to infrastructure for the sole (malaria spraying); 3,166 (education initiatives); 50,000 (Luilu use of its host communities. This comprised $220,000 spent drilling water supply), with communities also indirectly benefiting from a five wells, and $460,000 on construction at two schools. The first campaign to clean up local roads and drains in Kolwezi. was a new elementary school in Kisenda; previously local children at that level had to travel to Lualaba. The second was an extension for a school in Kando, creating a secondary school block; previously local children had to travel to Kolwezi. Mutanda’s direct beneficiaries in 2015 numbered: 689 (education and the new schools); around 20,000 (local wells); and 37,000 children (vaccination campaigns in the Lualaba health zone).

Glencore Sustainability Report 2015 73 Regional reports

Regional reports: South Africa We began marketing activities here in 1974, and mining in 1988. We now have a strong presence in the coal and ferroalloy sectors. We are a major contributor to local, provincial and national economies, with a workforce of over 27,000 employees and contractors. In 2015: 91% of our South African coal and ferroalloys procurement contracts (71% of our budget) were with local suppliers 98% of employees at these divisions were local people

47,000+ $5+ people helped by Our assets our healthcare and supported million education programmes spent on infrastructure 161 local that we share with the entrepreneurs public (predominantly water distribution, roads with loans, and healthcare) business parks and mentoring

Key

Operations Commodities

Offices Agriculture storage Copper Iron ore

Pacorini metals Agriculture port Zinc & lead Coal warehousing facilities & storage Nickel Oil Port facilities & storage Technology Ferroalloys Agricultural products

Oil infrastructure Alumina & aluminium

Umcebo Thorncliffe mine Shanduka Mototolo mine

Waterval mine Lion smelter

Char Technologies Rhovan Lydenburg smelter Boshoek smelter Eland Magareng mine Boshoek Mine (C&M) African Carbon African Fine Union Carbon Helena mine African Carbon Johannesburg Rietvlei Mine Producers Rustenburg smelter Johannesburg Kroondal mine

Wonderkop smelter iMpunzi Tweefontein

Goedgevonden

Bloemfontain

Richards Bay Richards Bay

Durban

KPIs 2013 2014 2015 Workforce 43,371 35,338 27,453

Fatalities 2 2 1

LTIFR 1.29 1.25 1.14

TRIFR 3.77 3.26 2.99

New cases of occupational diseases (per million hours worked) 0.07 0.08 0.03

Scope 1 GHG emissions (thousand tonnes) 5,823 4,333 4,508

Scope 2 GHG emissions (thousand tonnes) 5,963 6,450 6,731

Energy usage (PJ) 33 35 35

Water withdrawal (million m3) 18 31 31

Community investment ($ million) 10 12 5

Payments to governments ($ million) 1,104 142 153

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Governance We engage with the government on key regulatory changes, and to ensure issues material to our business are addressed effectively.

Engaging with legislation via industry associations

Glencore Ferroalloys is a member of the Ferro Alloys Producers When the government needs to engage with our specific sector, Association (FAPA); as chair of the environmental subcommittee, it it uses the FAPA platform. Glencore Ferroalloys submits official represents FAPA on the Business Unity South Africa (BUSA) forum. comments on draft legislation (including the recent draft carbon tax bill) via FAPA and BUSA. We use these forums to ensure BUSA is the official industry stakeholder platform for the South that our position is in line with the rest of our sector and to African government to engage with business; it is actively highlight material issues for our business and ensure they are involved and engaged in the drafting of climate change legislation. addressed effectively. This includes setting carbon budgets, drafting GHG emission inventory reporting regulations, and drafting carbon tax legislation.

Our people: safety Ensuring the safety of our workforce is our number one priority. Our operations have developed a number of ways to address the key risks facing our people, ranging from influencing their behaviour and lifestyle choices through comprehensive alcohol testing, to developing ways to communicate the behaviour we expect in low‑literacy communities.

A collision avoidance system designed for mining sites

Our ferroalloys department is currently working on innovative Underground vs surface work collision avoidance technology for underground and surface Drivers have poor visibility in underground working environments, mining vehicles. We refer to it as a People Vehicle Detection (PVD) as the vehicles have a very low profile, with a visibility angle system. The range of challenges at different sites means that we typically 180° or less. In contrast, the drive for increased have had to create new techniques and combine different detection productivity means that surface mining vehicles are generally technologies. For example, some assets use vehicles that move immensely large, this also prevents full visibility in all directions between our underground mines and the surface, requiring a PVD for drivers. system with the flexibility to work in both scenarios. The PVD system is still in a trial and development phase as at Our proposed PVD system would warn pedestrians of any publication; a pilot site has been identified and installation has stationary or moving vehicles around them, while alerting started. A full trial will be conducted; the system will only be operators to pedestrians and other vehicles. The system would also considered for rollout once proven to be successful. automatically stop vehicles upon entering a designated danger zone. No single technology currently available can provide the data needed to predict “dangerous proximity” reliably, so the PVD uses multiple detection techniques to achieve reliability, accuracy and comfort (ie minimising the irritation of multiple alerts for users).

Our people: health In South Africa, HIV/AIDS is a major challenge, threatening the health of our workforce and host communities. We offer treatment as well as testing and support programmes.

HIV/AIDS

Glencore Coal in South Africa has two employee wellbeing Life completes the cycle by offering our people and their dependents partners: Re-Action! and Life Occupational Health, who have support that ranges from primary healthcare to counselling. combined their programmes to help ensure that we spread the This includes psycho-social counselling, financial advice, legal message on healthy living throughout the division. They cross-refer advice and an online wellness portal with information, articles employees to each other and work closely with our own wellbeing and self-assessments. The partnership with Re-Action! makes the committees and the coal HR team. referral process easy; following HIV screening, any participant who is affected emotionally by the results can receive counselling. The organisations offer complementary services: Re-Action! This help is extended not only to the employee affected, but also any conducts health risks assessments and delivers HIV counselling dependent family. and testing (HCT), while Life provides a range of psycho-social assessments and counselling. Another example is Glencore Coal’s chronic illness management system; this is part of our healthy lifestyle programme, monitored In the 2015 HIV/AIDS testing campaign, about 67% of employees by Life. Each employee visits our occupational health centre if participated in HCT testing and 71% are enrolled in treatment they have been identified with a chronic illness, such as diabetes and care to date. This significant take-up is partly thanks to the or hypertension. department’s wellbeing champions, who talk to their colleagues about the benefits of getting tested and knowing your HIV status.

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Our people: workforce Changes in commodity prices have forced us to reduce some of our operations, requiring us to retrench a portion of our workforce. We worked closely with our employees, government and labour unions to manage this process.

Retrenchment: Glencore Coal & Glencore Ferroalloys

During retrenchment, procedure at our coal assets dictates that If this does not yield results, we notify the union and send letters of when the individual is a member of a union, the union must be retrenchment to individual employees. Then we further consult and notified; and that non-union employees must be met with and discuss retrenchment packages, which far exceed what the law and notified privately. There is a 60 day minimum consultation process. industry dictate. Retrenchment decisions are either made on a Avoidance measures (ie transferring the individual to a new “last in, first out” system, or based on the skillsets of individuals. position) are explored and exhausted before any retrenchment Glencore Ferroalloys provides a year of trauma/emotional takes place. counselling and financial counselling. Workers can also elect to Glencore Coal’s notice period is two months; we also offer support take additional skills training (eg plumbing, electrics, welding) in with emotional assistance and retraining. There is a voluntary lieu of an additional month’s salary. Then if an appropriate position option of further financial assistance or skill training (welding, becomes available, we will give them first consideration for rehiring. etc) to allow people to start their own business. This package is If workers become ill or injured during retrenchment, Glencore comparable to the market. Ferroalloys will continue to supply medical treatment at our on- Our ferroalloys division has a specific procedure for assets site medical clinics. They also remain on the share scheme, either undergoing retrenchment. If we identify a particular asset until their death or for so long as the scheme exists; they are never as experiencing stress or financial stress, we estimate how cashed out. long operations can continue and decide whether the asset can restructure the current model, or if it must shut down. The procedure includes a “Future Forum” with the unions to discuss the sustainability of the current operation. If operations cannot continue in their current form, we begin consultation meetings (a 60-day process) to raise issues and evaluate alternatives (eg reducing hours, more overtime).

Countering local unemployment

In 2015, Glencore Coal implemented a skills development The main objectives of our skills development programme are: programme to address the high local levels of unemployment. • To assist local communities in developing employable skills Neighbouring communities had been increasing demands to be given employment within local operations. While our assets do • To focus on youth development offer some local employment opportunities, this has not addressed • To identify transferable skills within the community that also the region’s widespread unemployment, mainly because the core encourage entrepreneurism services at our assets cannot take on a great number of people in the • To reduce dependency on our assets current economic climate. 339 community members have been enrolled into the programme so far. This project was recognised at the South African Colliery Managers Association’s 2016 awards ceremony.

Environment Our South African operations continuously monitor their environmental performance and develop management systems to minimise their impact on the environment, particularly on water.

In South Africa, our Lydenburg chrome smelter is The smelter has also begun a water balance project focusing implementing a range of projects to improve water and on the monitoring and control of water flow around the waste management. First initiated in 2002, the projects plant. Contaminated water captured in the pollution have involved extensive design and consultation phases. dam will be used as process water within the plant, and These resulted in the construction of a pollution control electronic flow meters will be installed to help identify and dam, which will help improve rainwater capture and rectify leaks quickly. Further improvements are scheduled prevent contamination of the local river. throughout 2016, as the site begins preparation for the new process water dam and a new slimes dam.

Society & human rights To support our aim of fostering sustainable growth, we focus our efforts on supporting education – both school-based and vocational – and livelihood activities that help reduce dependence on the mines and enable successful entrepreneurs and communities.

Eastern Limb Training Centre

Glencore Ferroalloy’s Eastern Limb Training Centre plays a significant The centre is accredited for the 40% of the course that consists of role within the Sekhukhune community, Limpopo Province, South theoretical and workshop learning. Glencore assets offer the practical Africa. The centre has partnered with the South African Mining workplace training that makes up the remaining 60%. Learners must Qualification Authority to create the MQA Generic Engineering Level 1 complete the theoretical and practical phases, submit a portfolio of skills programme. This allows local residents to obtain an entry level, evidence and undergo a summative assessment. Certification allows nationally-recognised certificate that is desirable to mining companies, employment in practical roles such as electricians and welders. helping them to work in the mining sector and giving them a general In 2015, 2,007 community members completed a training course introduction to engineering. This community project ran from 2014 at the centre. to 2015, with 225 community learners, and was funded by the MQA. The training centre also runs the MQA Engineering Level 2 programme, funded by our assets. Learners studying for this qualification are trained in a specific engineering discipline such as electrical work, instrumentation or diesel mechanics. Our assets’ community development teams help to find candidates with the minimum entry requirements (Manufacturers’ Health & Safety Association (MHSA) hazard and risk assessment). Learners can earn credits towards the National Certificate in Engineering and other engineering qualifications. Eastern Limb also runs the MQA Engineering Level 4 programme, which offers learners higher-level credits towards their National Certificate in Engineering and other engineering qualifications.

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South Africa continued...

Community development initiatives in South Africa

Multi-purpose community centre (Thusong Service Centre)

During 2012 our chrome smelter asset, Lydenburg, donated • An early childhood development centre managed by Cotlands, a $0.97 million to construct a multi-purpose community centre, the South African children’s charitable organisation, that offers early Thusong Service Centre, for the 12,000 residents of Mashishing in childhood development programmes and life skills Mpumalanga, South Africa. This was part of a government initiative Local government do not usually fund these projects, instead to establish centres in rural areas offering access to government relying on sponsorship, donations and grant funding from the services such as: public/private sectors. The national government departments • Social development that occupy these centres pay rent to local government to cover • Department of agriculture maintenance, care and other relevant expenses. • Local economic development Previously local residents had to travel 100km to Nelspruit to access • South African Revenue Services (SARS) such services. • Health & welfare services • South African Police Services (SAPS) • South African Social Services Association (SASSA) • Home affairs The Thusong centre also offers extra facilities: • A computer centre to increase the community’s IT literacy and supply internet access, particularly to younger community members • A library with a wide provision for both reading and research • A music academy, administered by the Casterbridge Music Development Academy, with the capability to develop skills to a formal level

Agricultural project Foodbank project

Glencore Eastern Mines committed $1.13 million to help develop We created the Rustenburg Food Bank project, in partnership with agricultural activity from subsistence farming in the Greater Tubatse Rustenburg local government and the South African Department of Municipality, Limpopo Province. The project works with local Social Development, and co-funded it from 2009–2012. During this farmers, the Department of Agriculture, the Department of Mineral period, we contributed ZAR9 million, while the Department of Social Resources, and other stakeholders, to address local poverty, job Development supplied ZAR4 million. creation and nutrition among the Ga-Pasha community, through We implemented an inclusive stakeholder engagement process to get growing and selling fresh produce. buy-in from key stakeholders, including our local communities. A local cooperative was registered in 2015, with three male and three The food bank employed 54 local agencies to identify indigent poor female members. All had experience of growing mangoes, oranges, and disadvantaged families in line with South African social welfare tomatoes, onions, cabbages, carrots, beetroot and spinach. guidelines. The initial service aimed to feed 2,200 people with The project has 10 hectares available for producing field crops, 800,000 meals each month, with plans to grow; Glencore funding in rotation with fruits and vegetables. is mainly used to buy food but a small percentage goes to project management and to pay service providers. The project has been a success so far despite the current severe drought. It is currently selling its wares to local businesses and The project has been extended to include training for local small-scale communities, as well as the regional hawkers’ association, at very farmers to help the community become self-sustaining in food; we competitive prices. Individual customers can buy fresh produce also buy fresh produce from them. At the moment we are supporting close to home, allowing them to improve their day-to-day nutrition. 11 small farmers in this way. Small local farmers are engaged and selling their crops helps to stimulate the small-scale farming economy.

Gobetse construction and services

We run a number of initiatives to help small local black-run businesses We put the business in contact with our main building contractor to develop and prosper. In one example, Lion Smelter in Limpopo ensure the necessary trade skills and training could be obtained. Province, South Africa, gave employment opportunities to a local We made the opportunity official by signing up to an offtake agreement; Steelpoort company during a long-term project to construct a new 30% of the total value of this specific opportunity within the main smelter. Steve Mokota owns Gobetse Construction, a small local contract was ringfenced for Gobetse Building & Construction. business with core competencies that include building/construction, renovations, maintenance and related activities. This initiative gave the company financial stability and sustainability and the opportunity to create several jobs for local people. It was able We linked Gobetse Construction up with our Business Support Centre to grow to a level where it won more work from other mines and sectors and assisted the company with relevant business incubation, support in the Steelpoort region. and statutory compliance services, as part of the development process.

Extending facilities for young learners in South Africa

Glencore Coal in South Africa, has made many investments in its Family, a global mentoring organisation. This project is aimed at host region. This includes the Tweefontein Optimisation Project, learners from disadvantaged communities such as Phola, who lack an $800 million brownfield development project 110km north-east adequate adult role models and who face a future of limited economic of Johannesburg, that began in 2010. An important community opportunities. They are often orphans and vulnerable children. development element of the project is the upgrade and relocation Built from renovated shipping containers, the LaunchPad facility of the Makause Combined School, situated in Phola township in has a fast internet connection and a battery power back-up. It has Mpumalanga. The Makause school project is part of a relocation video technology and a secure internet platform to connect these of 120 families from rural Tweefontein to Phola. learners with adult mentors around the world for weekly face-to-face The $5.87 million state-of-the-art school was made possible by a discussions. Through this secure platform, the mentors and mentees partnership between Glencore South Africa and the government’s work on homework assignments, conduct web searches in a safe and Department of Basic Education. The new Makause Combined School protective manner, and share life experiences. Learners can explore has doubled in size and caters for pre-primary, primary and secondary careers and build new skills using a range of interactive tools including grades. It has 32 classrooms, science laboratories, home economics email, blogging, video chats and virtual white boards. Sessions focus facility, wood and metal workshops, library, computer centre and a hall on developing their technological literacy, career preparation, that accommodates 1,200 pupils. It was completed and handed over to communications and life skills. the Department in 2015. We believe that bringing trained adult role models into the lives of such In addition, we provided $0.22 million in funding for the Infinite learners will help them develop the resilience, resourcefulness and Family project (also known as Launchpad), situated at the Mehlwana responsibility that can lead to better opportunities. Secondary School in Phola. We worked in partnership with Infinite

Glencore Sustainability Report 2015 81 Regional reports

Regional reports: Australia Australia is an important region for our global business; we have operated there for nearly 20 years. We are a major Australian employer, with around 16,500 people working across industries that include coal, copper, cotton, grain and oilseeds, nickel, oil and zinc. In 2015 we continued to make significant contributions to the regional, state and national economies, by employing people, sourcing from local communities, and paying taxes to our host governments.

In 2015: 1.48 million 22% reduction in lost time, tonnes CO2e 45% restricted work and medical more water reused and treatment injuries of fugitive emissions recycled than in the previous abated from our Australian year; use of freshwater coal operations decreased by 8%

$1.5 749 45 new graduate billion hectares of land positions filled and rehabilitated in 2015 paid to government 69 apprentices hired in taxes, royalties and other levies

Key

Operations Commodities

Offices Agriculture storage Copper Iron ore

Pacorini metals Agriculture port Zinc & lead Coal warehousing facilities & storage Nickel Oil Port facilities & storage Technology Ferroalloys Agricultural products

Oil infrastructure Alumina & aluminium

Townsville Copper Re nery McArthur River mine

Lady Loretta mine Bowen Coke Mount Isa Mines – Zinc Collinsville Newlands Mount Isa Mines – Copper Clermont Oaky Creek

Rolleston Ernest Henry Mining

Brisbane Ulan Murrin Murrin Brisbane Agricultural Mount Owen / Glendell Storage Wallaroo CSA Mine West Wallsend Perth Thevenard Ardrossan Bulga Agriculture storage Agricultural Ravensworth Storage Newcastle Liddell Port Lincoln Farmland Farmland Port Giles Agricultural Sydney Mangoola Storage Tahmoor Outer Harbor (Port Adelaide) Farmland Inner Harbour (Port Adelaide) Melbourne Adelaide

KPIs 2013 2014 2015 Workforce 19,610 18,487 16,599

Fatalities 2 1 0

LTIFR 2.14 2.18 2.19

TRIFR 21.49 9.83 8.05

New cases of occupational disease (per million hours worked) 0.62 0.60 1.31

Scope 1 GHG emissions (thousand tonnes) 11,802 10,586 11,146

Scope 2 GHG emissions (thousand tonnes) 2,006 2,168 2,288

Energy usage (PJ) 45 42 42

Water withdrawal (million m3) 76 86 84

Community investment1 ($ million) 16 9 5

Payments to governments2 ($ million) 916 1,776 1,517

1 Community investment figures quoted may vary in country of origin due to different definitions and inclusions. 2 Total net funds from governments on VAT, GST, sales tax and excise duties are not included.

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Our people: safety The safety of our workforce is the single most important aspect of managing our operations. There were no fatalities at any of our Australian assets in 2015 and the number of lost time, restricted work and medical treatment injuries decreased by 22% compared with the previous year.

Many of these improvements were made as a result of of the right behaviour. It continues to guide our approach Glencore’s SafeWork initiative, which focuses on identifying to creating and maintaining safe workplaces at all our the most common fatal hazards and addressing them Australian assets. through effective communication and the implementation

Assurance for our catastrophic hazard management

During 2013 and 2014, Glencore Coal embarked on a new approach The criteria for assurance are established by external and internal to catastrophic hazard assurance. This assurance programme allows experts. Each asset then assesses itself against those criteria. us to focus down on specific topics, using field verification activities The assurance team reviews that assessment and seeks clarification such as physical inspections and interviewing workers, while also as required before visiting the site to conduct targeted field gauging the maturity of each asset’s safety culture. A robust safety verification activities. After preparing their report, they select a culture is critical to managing catastrophic hazards effectively but is cross-selection of assets for verification after the programme is often overlooked in an audit regime. completed (generally three to nine months later). We undertook a pilot programme examining activities relating to the hazards We intentionally removed scoring from the assurance programme. connected to “underground gas and explosions” in 2014, followed It follows a five step approach: by assessments of “vehicle interaction” and “underground strata” • Step 1: establish criteria activities. We have begun planning for assessing “opencut strata” in 2017. • Step 2: each asset performs a self-assessment • Step 3: assurance team reviews the assessment We have had the new approach peer reviewed by an independent expert to assess its robustness and adequacy and to identify areas • Step 4: assurance team reports for improvement. • Step 5: verification

Murrin Murrin: targeting manual handling injuries

Our definition of manual handling covers tasks that involve More than 600 employees and contractors completed the mandatory bending, lifting, carrying, pulling, pushing or restraining, as well training. In addition, there were site-wide bulletins, quarterly as operating machinery and exposure to vibration. In particular, reports and a manual handling risk register, with risk assessments hand injuries account for over 50% of recordable injuries at Murrin for all major tasks. We updated our injury register to categorise Murrin, our nickel asset in Western Australia. these types of injury and assist in identifying major risk factors, tasks and affected body parts for each work group. In 2014, following a review that highlighted the prevalence of hand and finger injuries among manual handling injuries, Murrin In 2014 we reduced manual handling injuries to around half the implemented a long-term strategy based on eight fundamental previous year’s level, with a target of a further 30% reduction for principles. The subsequent manual handling injury prevention 2015, which we achieved. initiative focused on: • Increased training and awareness • Risk assessment and controls • Promotion of safe manual handling techniques • Development of safe manual handling management strategies • Emphasis on communicating within workgroups throughout the management hierarchy

Our people: health We strive to maintain a healthy working environment for our workforce.

Mates in Mining

In Australia, the leading cause of death for men aged 25 to 44 Glencore Coal Australia has been working with industry peers and women aged 25 to 34 is suicide. Every year over 2,500 people and the national charity Mates in Construction to establish the commit suicide in Australia; around 75% of these are men. Mates in Mining initiative. This initiative offers programmes developed specifically for mine workers, building on leading Research has shown that men in semi-skilled occupations are at international practice in community-based suicide prevention. particularly high risk for suicide. Suicide rates among male operators The Mates in Mining model for suicide prevention has been and labourers in the Australian construction industry are very high. independently tested and found to be associated with lower suicide Data is not readily available for the Australian mining industry, but rates in the construction industry. our workforce is predominantly male and aged between 25 and 44, with many employed as operators and in manual labour. The initiative will do three things on site:

The World Health Organization estimates that for every death by 1. Raise awareness about suicide and issues that can cause suicide, three survivors will be left with a physical or mental illness suicidal thoughts that prevents them from ever returning to their normal work duties 2. Make it easy to get help for oneself or a friend having a hard time and 12 will require time off work. 3. Offer appropriate and accessible help for workers in need

We are currently conducting pilot programmes at our Clermont and Glendell assets to help establish an industry-wide model.

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Australia continued...

Murrin Murrin employees embrace health and wellbeing

Our entire workforce share responsibility for creating, fostering Fitness and maintaining a culture of safe work. A healthy lifestyle is Regular after-hours fitness classes are consistently well particularly important for those working in remote areas, such as attended. They include yoga, boxing, circuit training and interval our Murrin Murrin nickel operations, which is 890km from Perth training, and are suitable for all fitness levels. Murrin Murrin’s in Western Australia. accommodation facilities include a gym, a 25m swimming pool, Labour mobility is important for our business, particularly for our tennis and basketball courts, cricket nets, a soccer field, a beach more remote assets. Our goal is a trained, competent and motivated volleyball court and a golf range. workforce; we actively promote health and wellness programmes for These and other health and wellbeing initiatives are underpinned our workers. We offer a range of lifestyle and family-friendly rosters, by Murrin Murrin’s Fitness For Work programme. The programme’s in keeping with our commitment to encouraging and promoting goal is to ensure that everyone is in a suitable physical, mental and a healthy work/life balance. emotional state to carry out their job properly, in a manner that does not threaten their health or safety, or that of others. Counselling Our Employee Assistance Programme (EAP) provides free professional counselling to our employees and their dependents to help resolve both personal and work-related problems. It is confidential, voluntary and available after hours.

Health education Monthly initiatives help keep our people informed and motivated. These include half-hour presentations based on the latest research and data, with an emphasis on practical application. Subjects in 2015 included sleep management, mental health, cardiovascular health, sprains and strains, diabetes, asthma and weight loss. Additional information is provided via the Murrin Health e-News newsletter. We also encourage our people to participate in site- based and community activities like walking, running, cycling and swimming. Our on-site dining room displays healthy eating information, including recommended daily intakes and facts about diabetes.

Health checks We carry out comprehensive health assessments on our employees and contractors, including body composition, cholesterol, blood sugar, blood pressure, cardiovascular fitness, strength, flexibility and stress. These assessments allow our people to monitor their fitness and set personal health goals, such as weight loss or improved fitness.

Our people: workforce As difficult economic conditions forced us to review a number of our operations, we have worked closely with our people to manage how these changes affect them.

Throughout 2015 our Australian assets continued to We believe that the best thing that we can do for invest in employee wellbeing and lifestyle programmes, our business, people and key stakeholders is to training and career development initiatives, and entry-level operate profitably, safely, responsibly, efficiently and programmes for critical professional roles. competitively to ensure the long-term sustainability of our Australian assets. Fast facts for 2015 We are committed to providing extensive support for Training 87 hours per employee employees affected by our operational changes and to Graduates 45 new graduate positions meeting our obligations in a timely way. We have made it Apprentices 69 apprenticeships a priority to find alternative employment for those affected. In some cases we have offered voluntary redundancies Scholarships 11 new scholarships awarded in the first instance. In all cases we have met National The global economic situation resulted in a number Employment Standards, and often exceeded them. We also of retrenchments across our Australian assets in 2015. provide wide-ranging transitionary support, including Every retrenchment decision is difficult to make and we re-training and upskilling opportunities, career planning, acknowledge their significant impact on our people, their financial management and job search assistance. families and the wider community, particularly in remote and regional areas.

Environment Management of our impacts on land, air and water remain core to our commitment to protect the environment.

Rehabilitation • Mangoola natural landform rehabilitation: this open cut coal Rehabilitation continues to be a major focus area for our mine is developing a ‘natural landform’ as part of its Australian operations. In 2015, we successfully rehabilitated mining site rehabilitation; we expect to complete this in 749 hectares of land. We are committed to progressively around 2026. It will cover the entire 1,300ha disturbed rehabilitating and restoring the land we disturb during by our activities, making it the largest natural landform mining operations, as well as when mining activities project in the Hunter Valley. The traditional overburden have ceased. rehabilitation approach, with uniform slope angles and flat-top dumps, using contour drains and drop structures To date, we have rehabilitated over 11,600 hectares, to manage water flow, would not fit into the surrounding or around 23% of the total land area disturbed by landscape. We determined that an undulating landform our operations. with naturally occurring vegetation would look more Our focus is on minimising our active mining footprint to natural and provide a more stable long-term landform. the smallest possible area and returning the rest of the land We used specialist software to model onsite dump to self-sustaining native ecosystems, agricultural use or parameters and soil types, with comparisons to the other suitable purposes that meet government requirements natural land around it. This will provide a theoretically and the expectation of our communities. stable landform, based on fluvial geomorphic landform design. The model will be used by mining engineers Supporting best practice rehabilitation in the industry to develop appropriate dumps and ramps to produce a Glencore has worked with the Minerals Council of Australia natural-looking landform. Following this successful trial, to promote leading rehabilitation standards across the we will use the natural landform initiative at other sites, industry. These three examples act as a showcase. including Ravensworth and Bulga Coal open cut mine.

Glencore Sustainability Report 2015 87 Regional reports

Australia continued...

• Liddell open cut coal mine: we rehabilitated land into high host communities and plan for the necessary environmental quality grazing pasture, demonstrating that mined land obligations post-closure. Specific impact assessments are can be returned to productive, sustainable farming. carried out to identify societal impacts on local communities Successful grazing trials delivered strong results at and the measures necessary to manage them. market. For the first phase of the trial concluding in June Glencore also conducts annual assessments of our 2014, cattle grazing on rehabilitated land grew faster rehabilitation liability, with detailed reviews undertaken and averaged an extra 79kg in weight over cattle on across all our Australian coal operations in 2015. neighbouring pasture. This meant that they returned a 25% higher price per head at market. The second phase Air quality of the trial, which was run over 2015, showed a similar trend with cattle on rehabilitation pastures outperforming During 2015 our Australian assets continued to work on those grazing on natural pastures where mining had meeting our own air quality requirements. In many cases, never occurred. these requirements go beyond compliance with existing legislation, regulations or licence conditions, demonstrating • Westside open cut coal mine: we completed rehabilitation our desire to minimise our environmental impact. We have of the site in April 2012, just two months after mining instituted a range of measures to minimise dust and operations ceased. We have successfully returned the improve air quality across our coal, copper, nickel and zinc land to high quality native vegetation, which is now home assets, including: to a diverse range of flora and fauna. Recent monitoring found seven threatened species on the rehabilitated site, • Using water trucks, wheel washers, road sweepers and including the grey-headed flying fox, masked owl, greater dust suppressants broad-nosed bat, little bentwing bat, powerful owl and • Altering or ceasing operations at open cut mines during squirrel glider. adverse weather conditions, including restrictions on blasting Managing the impacts of mine closure • Placing water sprays on conveyors and stockpiles We are focused on operating our assets in a safe, efficient and responsible manner. This also means managing the • Installing dust control centres that continuously monitor socio-economic and environmental legacy we leave behind dust levels through: well after our mining operations have closed down. –– Video camera surveillance technology With the challenges currently facing the global resources –– Observation of real-time dust monitoring sector we continue to safely, efficiently and responsibly equipment results manage our Australian operations. In some cases, this • Incorporating Trigger Action Response Plans (TARP) for has led to the difficult decision to place select assets into appropriate response to dust levels care and maintenance, or close operations sooner than • Introducing truck simulators, for training operators in originally planned. specific procedures for protecting air quality All our mining operations either have detailed or • Undertaking temporary rehabilitation: seeding disturbed conceptual mine closure plans, depending on whether they areas to minimise exposed land even if the land is likely are scheduled to close within five years, or if they have more to be re-disturbed in the near future than five years of operations remaining. These plans aim to • Installing real-time air quality monitoring systems with assess the socio-economic impacts of mine closure on our integrated weather stations at many

Mount Isa Mines: sharing air management data

In 2015, Mount Isa Mines (MIM), our copper and zinc-lead-silver MIM created a smartphone app and an online real-time air asset in North West Queensland, developed two new industry- quality portal to give the community a direct view of Glencore’s leading online tools to provide the Mount Isa community with open comprehensive air quality monitoring network. These tools were and transparent information about our air quality management. developed during 2015 and launched in early 2016; they provide

information on our SO2 management activities, with air quality data Supported by extensive environmental and health impact studies, the uploaded hourly. Queensland Government granted MIM an amended Environmental Authority (EA) in September 2015. The EA included lower air quality Since 2012, MIM has invested more than AUD5 million in air limits and required that we continue improving our environmental quality system improvements. MIM monitors air quality 24 hours performance, including building on existing community awareness a day, seven days a week, with one of the most intensive air quality campaigns on air quality management in Mount Isa. monitoring networks of any Australian city.

McArthur River Mine: environmental progress

McArthur River Mine (MRM), located in the Gulf of Carpentaria in • Engaging a variety of independent experts to help monitor and the Northern Territory, is a world-class zinc-lead mine containing manage the challenges the second largest zinc deposit in the world. MRM is focused The Independent Monitor report in December 2015 covered MRM on operating in a safe and responsible manner. The mine is an activities from October 2013 to September 2014. It noted improved important part of the Northern Territory’s resources sector and performance in a number of areas, including managing seepage makes a significant contribution to the economy. from MRM’s tailings storage facility; revegetation of the McArthur MRM has faced some environmental challenges, including the River channel; and expanded environmental programmes for management and storage of waste rock. We continue to address groundwater, dust, soil, and marine/aquatic environments. these challenges openly and have made good progress, including: Throughout all our activities, we have continued to engage openly • Eliminating emissions from our waste rock area and regularly with all our key stakeholders. This includes the • Further improving the stability of our tailings storage facility local community of Borroloola, a variety of independent scientific experts, a number of media organisations and Northern Territory • Conducting a thorough fish testing programme, which government ministries that include the Department of Mines and determined that although a small number had elevated levels of Energy, the Department of Primary Industry and Fisheries and the lead, they are restricted to a creek on our site that is inaccessible Department of Health. to the public, and where fishing is not permitted • Continuing to revegetate the McArthur River channel, leading to an increase in native fish numbers such as barramundi and sawfish

Society & human rights In Australia we engage with communities across the country, from capital cities to rural and regional towns and small remote indigenous communities.

Proactive engagement with these communities is an Supporting community initiatives essential part of our approach to managing sustainability Despite difficult economic conditions Glencore has and business risk, and maintaining our licence to operate. maintained its commitment to supporting important In 2015 we continued to make significant contributions community initiatives across our operations. In 2015, to Australia’s regional, state and national economies. this included initiatives in health, education, enterprise Our most significant contribution came from our core and job creation, societal and community development, business activities: employing people, sourcing from local environment and capacity building. Our focus has been communities and payments to our host governments. to support initiatives that fulfil longer-term community requirements and that, while having an immediate impact, Fast facts can eventually become self-sustaining.

Local jobs Nearly 87% of our employees and around 68% of our operational managers were engaged from, or living in, the local communities in which we operate

Local goods Nearly 60% (over $3.6 billion) of our spend on and services suppliers, goods and services went to local businesses

Supporting Over 50,000 of our suppliers and contractors local business were local

Glencore Sustainability Report 2015 89 Regional reports

Australia continued...

Fostering positive relationships with our growers

Glencore’s Agricultural Products business makes a significant Industry and community investment contribution to Australia’s agricultural industry. It runs one of We sponsor grower groups involved in research, development and the leading grain marketing, storage and logistics networks extension, to enhance the productivity and profitability of farming in Australia. enterprises. We also contribute to various community clubs, groups Strong and positive relationships with our grain growers are and events, in regional grain growing areas, to further support our important to us. We engage with growers to make sure that our relationship with growers. services continue to meet the needs and expectations of growers, and to ensure our exhaustive understanding of production from Community complaints the farm level upwards. There was a significant decrease in the number of community complaints recorded at our operations in 2015. The majority of Your Opinion Matters online portal complaints received in Australia related to our Mangoola coal Growers can give us feedback at any time through an online portal asset, which has many local residents living nearby. The number called Your Opinion Matters. Feedback is automatically directed to of complaints about Mangoola was significantly reduced in 2015; the relevant person within the business and followed up within it received 182 complaints in 2015, compared to 404 in 2014 (a 55% 48 hours. reduction) and 534 in 2013 (a 66% reduction). Across Australia, we recorded 504 complaints, compared to 729 Annual surveys in 2014. We conduct an annual review of our storage and handling operations and the services we provide to grower customers. Indigenous engagement This includes an online survey sent to all grower customers. In 2015, An important part of our commitment to creating shared value for 280 surveys were completed: 45% of respondents stated that our our communities is our focus on practical efforts to help address delivery and operations had improved, with 92% believing it had issues affecting the indigenous communities close to our assets. improved or was comparable to the 2013/14 harvest. We try to develop constructive relationships with indigenous people based on respect, meaningful engagement, trust and mutual benefit. Strategic site committees Some of our operating regions are remote and have been inhabited Our Viterra storage and handling business has a grower by indigenous people for centuries. We recognise the unique role representative structure, to further facilitate effective consultation. they play in global culture and respect their customs, interests This consists of strategic site committees, which provide local and rights. Our assets implement formal agreements or policies to information and advice to inform Viterra’s storage and handling manage their engagement with indigenous communities. operations. We consult with the committees on grower feedback, service levels and future trends that may lead to changes in site Glencore acknowledges Aboriginal and Torres Strait Islander operations, to improve customer satisfaction and service delivery peoples as first Australians and we respect their rights and interests during harvest. in Australia’s lands and waters. We are committed to working in partnership with indigenous Australians to support the effective management of natural resources and to deliver improved socio‑economic outcomes for indigenous communities.

A turtle boat for the Gudjuda Rangers

A $139,000 sponsorship by Glencore has provided a 6.2m vessel to assist the Gudjuda rangers, part of the Queensland Indigenous Land and Sea Rangers. It will improve important turtle research off the north Queensland coast, and enhance other activities, such as wetland care and management, as well as helping the local community in the event of natural disasters such as flooding and cyclones. The new vessel is not only a great asset for the group, but has also been the catalyst for new skilling programmes for the Gudjuda Rangers, including coxswains certificates, vessel operation competency and safety management systems training.

Mount Isa Mines: employment programme for indigenous people

Our iconic Mount Isa Mines (MIM) asset in north-west Queensland environment. Trainees live at a residential campsite where they gain has a long history of working with the Kalkadoon people. key qualifications, have access to indigenous mentors, and experience Since signing an Indigenous Land Use Agreement (ILUA) in 2011 the values and work ethic required for full-time employment. we have continued to work with the Kalkadoon people to deepen Our trainees then enter a 12-week supported employment our relationship and achieve better community development and programme at MIM to get first-hand experience in an underground employment outcomes. mining environment, with the guidance and support of a dedicated In 2014 we revised an existing indigenous employment programme full-time supervisor and mentor. Those who successfully complete to train and mentor local indigenous people working for us as the first two stages have the opportunity to apply for full-time trainees, and transition them into full-time jobs across our business. employment at our operations. We work in partnership with a number of local organisations on this In 2015 we expanded the programme to include Ernest Henry programme, including work-ready training provider Myuma, which is Mining, an asset near Cloncurry. A surface programme has also been run by indigenous people. introduced at the MIM copper concentrator to offer more job diversity. The AUD1.3 million programme provides training and mentoring Eighteen graduates of the programme are now in full-time opportunities for up to 48 local people every year; to date, 80 people employment at MIM, either directly with Glencore or as contractors. have successfully completed the programme. In 2016 we will begin to partner successful graduates with After our recruitment process, trainees attend a 12-week programme experienced indigenous employees from across our workforce to at the Myuma Group Vocational Training and Employment Centre provide ongoing mentoring and support, and improve long-term to introduce them to the mining industry in a safe and supported employment outcomes.

Agricultural advances

No-till farming Precision farming Mechanical cultivation processes lead to a breakdown in soil Fields are mapped using methods that include satellite imagery, structure, decreased microbial activity and decreased water use electromagnetic surveys and soil tests, to create a zone map of efficiency, resulting in decreased production potential. For this each field’s soil characteristics. We create variable rate application reason we have introduced no-till farming methods at Australian GPS maps for our farming machinery. For example a seeder’s GPS agricultural assets. controller automatically adjusts the nitrogen and phosphorus based on exact soil characteristics rather than an average for the field. Summer weeds are controlled via chemical rather than mechanical At harvest yield maps determine the exact amount of phosphorus means. Stubble from the previous crop is left on the fields whenever removed across the field, we use that data for the next seeding to possible, with all moisture from summer rains conserved for the ensure we only add back the same amount. winter crop. The crop is planted in one operation; a small disc or narrow tine creates the seed furrow, seed & fertiliser is placed in the These technologies ensure fertiliser is only placed where furrow, then a closer plate and press wheel ensure good seed soil needed, cost is minimised and production maximised. They also contact. Soil between rows is untouched. promote improved soil structure, microbial activity, moisture conservation, soil moisture holding capacity and plant rooting depth, increased plant-available moisture and therefore increased production potential.

Glencore Sustainability Report 2015 91 Regional reports

Regional reports: North America We have operated in North America for over a hundred years; today our assets employ around 12,000 people, including contractors. Our assets include nickel, copper and zinc operations and projects, as well as agricultural facilities, recycling plants and technology businesses.

In 2015: $2 million spent on education, healthcare 83% and other local projects, of procurement budget spent including skills development for with North American suppliers aboriginal peoples, benefiting over 600,000 people

1,000+ local entrepreneurs supported

20 years of the Raglan agreement, which addresses business development in the local community

Key

Operations Commodities

Offices Agriculture storage Copper Iron ore

Pacorini metals Agriculture port Zinc & lead Coal warehousing facilities & storage Nickel Oil Port facilities & storage Technology Ferroalloys Agricultural products

Oil infrastructure Alumina & aluminium

Raglan mine

Bracemac-McLeod mine

Agricultural Prince Rupert storage Horne smelter Montreal Cascadia Ste Agathe Sudbury General Smelting Paci c Kidd operations CCR re nery Regina Vancouver Northgate Montreal Bécancour Ray Minot Thunder Bay Portland Warden Brunswick Minneapolis Century Aluminum Lead smelter Lewiston Sudbury Integrated Minneapolis CEZinc re nery Nickel Operations Chicago Toronto Rhode Island Nickel Rim South mine Recycling San José Recycling Detroit Nickel Rim South mine

Fraser mine Memphis Stamford Onaping Depth Los Angeles (project) Nickel Rim Depth Baltimore (project) Century Aluminum Oklahoma Carson Mobile Long Beach New Orleans Houston

Mexico City Cancún

Santo Tomás de Castilla

Paraiso

KPIs 2013 2014 2015 Workforce 12,783 11,757 11,679

Fatalities 0 0 1

LTIFR 2.05 1.52 1.46

TRIFR 12.82 12.20 12.13

New cases of occupational diseases (per million hours worked) 3.28 0.00 0.04

Scope 1 GHG emissions (thousand tonnes) 1,129 1,128 971

Scope 2 GHG emissions (thousand tonnes) 2,320 2,173 2,055

Energy usage (PJ) 41 38 36

Water withdrawal (million m3) 126 122 123

Community investment ($ million) 7 5 5

Payments to governments ($ million) 168 455 396

Glencore Sustainability Report 2015 93 Regional reports

North America continued...

Our people: safety The safety of our workforce remains our number one priority. This focus is reinforced by a fatality that occurred at the Nickel Rim South Mine.

We regret to report the death of one of our people in along with a presentation on the key organisational October of this year at the Nickel Rim South Mine in learnings to be shared across the workforce. We found that Sudbury, Ontario, the last such event in 14 years. A miner while engineering controls can address the root causes of with close to 20 years of service was found unresponsive the incident, we must do more to improve the effectiveness next to a scoop tram he had been operating. We were of critical controls, such as use of seatbelts, and not assume saddened by this loss, but also determined to learn from that, once implemented, they will remain effective without this tragedy. We carried out a thorough investigation into constant, consistent reinforcement and enforcement. the incident, and produced a video simulation of events,

Our people: health We are committed to maintaining a healthy work environment for our people throughout the life of our operations, and continue to invest in innovative solutions to emerging challenges.

Substituting cleaner electrical equipment for diesel

Our nickel mines in the Sudbury basin, Canada, are getting deeper, which is creating new challenges. These include increased costs for the ventilation and air cooling required to maintain a healthy work environment. Ventilation is generally required to dilute and clear away contaminants that arise from the mining process. We are currently researching battery technology as a possible solution to reduce mobile equipment emissions and thus ventilation requirements in our deeper mining assets. We hope to prove that the technology is feasible for new expansions. We purchased a personnel carrier that uses 100% recyclable lithium iron phosphate batteries. This was commissioned and started use onsite at Fraser Mine in May 2015. Our workers reported that they were satisfied with the new vehicle, as it produces very little noise and no heat or emissions, while still driving as its diesel equivalent. A downside is that shifts must be planned to ensure there are opportunities to charge the battery. However, there are a wide range of health benefits for our people that include the elimination of diesel particulate matter, no off‑gases from diesel engines, less heat generated and less humidity, as well as reduced noise levels.

Environment Our operations can have direct and indirect impacts on the environment. We work to minimise our potential effect; we comply with, or exceed, relevant regulations.

In 2015, we have made progress on a number of initiatives We also make recycling a priority throughout our business to manage our environmental impact, particularly on air and have significant recycling operations at our copper and and water. nickel facilities in North America, which keep hundreds of thousands of tonnes of waste out of landfills.

Improving dust reduction at the Port of Quebec

We have a long relationship with the Port of Quebec in Canada; were recommended for ISO 14001 certification, following a series of they provide the infrastructure we need to meet customer demand. third-party audits. Our facilities in the area include railway tracks, a storage dome, a In October 2015, Quebec City’s Public Officer of Health published screw-type ship unloader, enclosed conveyor systems and a number a report on the presence of nickel in the nearby community of of bag filter dust collectors, all of which lie on land leased to us by Limoilou. This indicated that the nickel in the air was not a health the port. risk. It also made five recommendations to improve air quality Each year, about 30 ships travel to and from the Port of Quebec, in Limoilou, including asking the Port of Quebec to “use good carrying approximately 175,000 tonnes of our nickel concentrate practices of handling, storage and other uses of nickel” and to and 130,000 tonnes of nickel matte. The concentrate from our nickel use available technology to minimise dust. It calls for continued mine in Northern Quebec travels through the port and goes to our emissions monitoring at the source, but also close to residential smelter in Sudbury, Ontario. Once processed, it is shipped through areas, and calls for all parties to share their data. the port to Nikkelverk, our refinery in Norway. We meet these recommendations by continuing with extensive air We have maintained our continuous improvement programme quality monitoring in and around our operations; we plan to work at the port. This focuses on dust suppression, including a dry with Quebec City on its general air quality study, as well as other fog system for ship loading and unloading, and enclosure of the environmental factors such as noise and exposure to affected soil conveyor that loads ships. In December 2015, our port facilities in Limoilou.

Recycling e-scrap at the Horne smelter

The use of electric and electronic products has increased To facilitate local electronics recovery, the Horne smelter holds a significantly over the past few years. Shorter product lifecycles, community Recycling Day each year. The public is encouraged and the growing number of ways in which these products can to bring in their unwanted electronic equipment for recycling be used, is making them more of a burden on our environment. and invited onsite to learn more about copper and precious metal Recycling these products provides a viable, environmentally- recycling, as well as our environmental performance. Since we friendly alternative to landfill or other disposal methods. started this programme in 2007, our Recycling Day has attracted over 10,000 people, and diverted significant quantities of end-of-life Our Horne smelter, located in Rouyn-Noranda, Canada, has electronics from local landfills. been recovering copper and precious metals from end-of-life electronics for over 30 years. It is one of the world’s largest recyclers of electronic products. We close the loop between processors, manufacturers and consumers. We receive end-of-life electronics from North America, Europe, Asia and South America. The materials are sampled for accurate value determination and processed to produce copper anodes. These are shipped to our CCR Refinery in Montreal for further refinement into products for sale.

Glencore Sustainability Report 2015 95 Regional reports

North America continued...

Tailings management and infrastructure

In 2015, Raglan Mine, our nickel asset in northern Quebec, In 2005, we established the Raglan Steering Committee, a renewed its commitment to environmental stewardship, social multidisciplinary team selected for their specific knowledge, responsibility and corporate governance by updating its tailings experience and reputation, to study the long-term effects of climate policy. This ensures our tailings facilities are managed responsibly change on tailings management and reclamation. They have in accordance with the Mining Association of Canada’s Towards ensured that our existing mine tailings reclamation process meets Sustainable Mining (TSM) initiative. Raglan has implemented the needs of both Raglan and current environmental standards and a robust management framework for tailings and associated regulations. However, this process was developed during Raglan’s infrastructure, and pledged to: early years, at a time when anthropogenic climate change was not widely recognised. • Consult stakeholders in the development of new tailings management commitments It is now generally accepted that there will be geographical impacts • Allocate all resources needed to support the framework from climate change that make it possible that northern Quebec may lose some or all of its permafrost layer within the next 200 • Build awareness of the policy and its commitments to 300 years. As our current reclamation strategy relies on the among employees permafrost, we need to revise it. This will involve selecting the best • Apply the Mining Association of Canada’s guide on possible terrain covering, and developing a robust and sustainable tailings management reclamation process to ensure that our reclamation efforts remain • Regularly revise its continuous improvement policy effective for years after Raglan Mine has gone. and commitments Sound environmental management is a priority for Raglan; • Devise an effective tool for evaluating and tracking progress it is committed to minimising its environmental impact and against the policy demonstrating leadership in key areas of environmental management. There is more information in Raglan’s Towards Sustainable Mining Progress Report 2014 at www.mining.ca.

Partnering with First Nations communities to increase salmon populations

Following the 2013 closure of Brunswick Mine, in eastern The partnership has also allowed members of the Pabineau Canada, Glencore partnered with the local Pabineau First Nation community to develop skills in environmental monitoring; they community to increase the Atlantic salmon stock in Little River. have demonstrated a strong commitment to rebuilding this resource This river is downstream from the Brunswick site, which had for the future. previously discharged effluent into the waterway since the 1960s. Construction of a modern effluent treatment plant and other enhancements over the years have improved the water quality since that initial period, but the salmon population remained below historical average figures. Our closure plans for the mine included an adaptive environmental management plan for Little River. One element of the plan is our work with the Pabineau community. This began with the community investigating locations for the work, based on its previous experience with salmon enhancement programmes for other local rivers. In 2014, 13,000 salmon fry were released from streamside incubation boxes; with a further 50,000 in 2015. In 2016, we plan to release another 50,000 fry. Initial results show an increase in fish density. We completed a comprehensive aquatic effects monitoring programme in 2015. This was part of a three-year monitoring cycle required by the government department Environment and Climate Change Canada.

Society & human rights We aim to foster sustainable growth wherever we operate. In Canada, this means close engagement with our host communities, including First Nations, Métis and Inuit peoples, both during the life of the operation and following its closure.

Partnering to create a lasting legacy in Timmins

Kidd Operations in Timmins, Ontario is the world’s deepest base This partnership marks the first time that the OTF has partnered metal mine, operating at nearly 3km below the earth’s surface for with a corporation, breaking the ground for future partnerships the last 50 years. We are making use of leading-edge technology, with industry to benefit communities across Ontario. such as automated underground loaders and ventilation-on- demand, to meet the challenges of deep mining and extend the mine’s working life to 2021. Kidd Operations is driven by the desire to see its host community thrive. We recognise that local non-profit organisations contribute to the vibrancy of our local community; we engage with these stakeholders to contribute to their long-term sustainability. This includes recognising Kidd employees’ volunteerism and investing in large-scale projects, such as an expansion of Timmins’ only non-profit assisted living facility for senior citizens. This asset has built a local reputation as a corporate leader in community development. This leadership caught the attention of the Ontario Trillium Foundation (OTF), an agency of the government of Ontario and the largest grant-making foundation in Canada. Kidd Operations and the OTF announced their creation of the CAD1 million Kidd Operations-Ontario Trillium Foundation Legacy Fund. The partners will each invest CAD500,000, to be made available to local non-profit organisations after Kidd winds up operations. This innovative public-private partnership fulfils both organisations’ shared vision for a sustainable non-profit sector; this is essential for building a healthy and vibrant community.

Glencore Sustainability Report 2015 97 Regional reports

North America continued...

20 years of the Raglan Agreement

In 2015, the Raglan Mine and its Inuit partners celebrated 20 years Over the past 20 years, Raglan has proudly stood by its of trust and respect, the foundations of which reside in a critical commitment. The mine is one of the region’s largest employers and document: the Raglan Agreement. trainers of Inuit people (who comprise over 20% of its workforce) and has supported several entrepreneurial and cultural programmes The Raglan Agreement is a trailblazing partnership that set an in the area. example for the industry in 1995. It was the first Impact and Benefit Agreement (IBA) in Canada to be negotiated and signed directly Along with upholding the basics of the Agreement, Raglan has between a mining company and an Aboriginal group. It has since also looked forward to find ways of creating sustainable activity in been used as a standard for leading practice to be followed by other Nunavik that will benefit future generations. In that spirit, Raglan’s Canadian mining companies. Community Social Involvement programme recently began to support two new projects. These are an ice monitoring project, The Raglan Agreement ensures that the partnership between aimed at identifying the impact of climate change on marine Raglan Mine in northern Quebec, and the local Nunavik aboriginal infrastructures in Nunavik; and a project to create greater food communities is rooted in a meaningful respect for the Inuit people, security for the people of Salluit, in the form of fish and seafood. culture and lands. It is a formal agreement that assures that we contribute positively to the Nunavik’s social, economic and cultural wellbeing, in particular that of the nearby communities of Salluit and Kangiqsujuaq.

Supporting aboriginal people in the mining sector CRSC pilot Glencore helps to support aboriginal people to enter the This is a pilot of the Canadian Statement of Grains mining industry through its sponsorship of the Canadian Sustainability, which will ensure that the grain Aboriginal Minerals Association Annual Conference. sustainability standard is both relevant and acceptable This conference gathers industry and community leaders to producers. CRSC intend for the pilot to create a from across the country to examine a wide range of related comprehensive statement on key field production issues. Topics covered in 2015 include relationship building, sustainability indicators for grain in Canada. It will follow strengthening environmental capacity and incorporating a similar approach to that recently used by the Canadian traditional knowledge in mining projects. Roundtable for Sustainable Beef, with significant emphasis on producer engagement and extensive industry input. Working with the Canadian Roundtable for Sustainable Crops • Phase 1: Consider indicators from existing programmes, and evaluate within the context of a Canadian cropping Our agricultural assets in Canada work closely with system, in accordance with CRSC core principles national industry groups, notably the Canadian Roundtable and criteria for Sustainable Crops (CRSC), which includes grower, • Phase 2: Set a baseline of sustainable production industry, customer and consumer organisations. indicators to be applied at a macro level, based on either Over the next three years, the CRSC plans to deliver practice or outcomes the Canadian Statement of Grains Sustainability • Phase 3: Involve growers in qualitative and quantitative and the Canadian Standard of Grains Sustainability, testing of the indicators to identify and explore any a national standard for Canadian grain cropping practices. implementation gaps or challenges CRSC members are currently working on two projects • Phase 4: Work with the CRSC’s Research and Assessment to contribute to those solutions. Committee and Communications Committee to Sustainability metrics platform disseminate the results In January 2015, the Canadian government approved three The statement pilot builds on the 2014 CRSC feed barley years of funding to create a sustainability metrics platform, pilot, which led to creation of a carbon footprint for along with a data catalogue, to support the development Western Canadian barley, scheduled for completion in of the grain sustainability standard. The new platform will December 2016. align with, and bring together, existing codes of practice and operating programmes into one universal approach. The metrics platform is intended to be a definitive reporting platform on sustainability metrics for the Canadian grain, oilseed, pulses and specialty crops sector at a regional or “macro” level. It will integrate the best available research data on sustainability metrics for different grain growing regions, enabling full regional reporting for each commodity.

Glencore Sustainability Report 2015 99 Regional reports

Regional reports: South America Our operations in South America encompass coal mines in Colombia, copper assets in Argentina, Chile and Peru, and zinc assets in Bolivia and Peru, as well as various agricultural facilities. Our workforce comprises around 26,000 employees and contractors.

In 2015: $570,000 55% invested in community 47% development initiatives of our Colombian to help over 27,000 people of our Argentinian procurement contracts in Colombia procurement contracts are are with local suppliers with local suppliers

68% 30,000+ of our Chilean procurement Argentinians benefit from contracts are with local our community investment suppliers, while the vast programmes, mainly majority of our employees via hospitals are local

$1.8 $600,000+ 1,187 million spent supporting 130 local Argentinian farmers entrepreneurs in Chile. and small invested in road businesses supported infrastructure in Peru Over $1 million spent on and over $4 million on community investment for community development around 15,000 Chileans

Key

Operations Commodities

Offices Agriculture storage Copper Iron ore

Pacorini metals Agriculture port Zinc & lead Coal warehousing facilities & storage Nickel Oil Port facilities & storage Technology Ferroalloys Agricultural products

Oil infrastructure Alumina & aluminium

Puerto Nuevo Cerrejón

Prodeco

Bogotá TGPM

Belem São Luis

Antamina Tegram

Los Quenuales Antamina Recife Agricultural Lima storage

La Paz Perubar

Antapaccay

Sinchi Wayra / Illapa Ponta Porã Aguilar Glencane – Río Vermelho Collahuasi Río de Janeiro Altonorte Río de Janeiro Asunción Lomas Bayas São Paulo Molisa Alumbrera São Paulo Renova-Timbúes Punitaqui Canoas Rice mills Puchuncaví Renova- Agricultural storage San Lorenzo

Santiago de Chile Ramallo Paso Dragón Agricultural storage Montevideo Moreno-Daireaux Buenos Aires Moreno-Quequén Galván KPIs 2013 2014 2015 Workforce 47, 017 29,326 26,215

Fatalities 8 1 2

LTIFR 2.80 2.59 2.27

TRIFR 6.96 4.81 4.09

New cases of occupational diseases (per million hours worked) 0.17 0.26 0.14

Scope 1 GHG emissions (thousand tonnes) 2,776 2,823 2,790

Scope 2 GHG emissions (thousand tonnes) 1,029 606 640

Energy usage (PJ) 49 47 50

Water withdrawal (million m3) 287 294 263

Community investment ($ million) 60 29 14

Payments to governments ($ million) 879 1,499 1,106

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Our people: safety

Our first priority is to maintain safe workplaces for our people. Our assets have been building a positive safety culture in South America for some years; we are starting to see positive results.

Focusing on safety in Colombia

Prodeco, our coal asset in Colombia, has been building on our Focusing on risk management Group SafeWork initiative to develop a safety programme for As with all Glencore assets, Prodeco has undertaken an analysis its own operations, called Yo Trabajo Seguro (I work safely). identifying the catastrophic and major risks to its business. Prodeco commissioned development of this programme in 2014, to These are recorded in its risk registers, along with the necessary assist with the implementation of SafeWork and tailor the initiative’s critical risk controls. We are currently working to implement an fatal hazard protocols to Prodeco’s specific needs. assurance system to monitor these controls as well as the level of Yo Trabajo Seguro uses the OHSAS 18001 health and safety oversight from senior operational management. management standard as a framework, with systems development Prodeco is training its supervisors, operators and technicians in and implementation priorities based on requirements from Group hazard identification and seeing steady improvement. We have policies. It should be fully implemented by the end of 2016. introduced the popular “Take 5 for safety” approach, to encourage The programme was developed through a collaborative process everyone to stop and think about all the possible risks involved in involving Prodeco’s entire workforce. This participation has each task and how to mitigate them. Workers must also use a job encouraged our people to feel ownership for the programme’s safety analysis to improve personal safety for each task. activities and to feel that they want the programme to succeed. Prodeco is developing a strong safety culture and establishing support for the programme with workers at all levels. Strong visible safety leadership is a key part of the programme’s success. Zero tolerance on safety breaches and strict consequence management has resulted in a disciplined workforce. In common with the Group safety approach, Yo Trabajo Seguro has a strong focus on risk management.

Our people: health

Occupational health at Prodeco

To achieve our goal of zero harm and keep our people healthy We encourage our people to exercise and stretch during mid-shift and productive, we focus on the effective management of breaks, to assist in preventing muscle spasticity and to normalise occupational health risks. Our management teams set and maintain blood flow. high occupational health standards, and strive for continual We also provide training on healthy lifestyles to encourage physical improvement. We encourage our people to have healthy lifestyles activity, a balanced diet and the prevention of cardiovascular and participate in our wellbeing programmes. disease, diabetes and hypertension. To prevent fatigue-related illness, training also includes sleep hygiene, family life, abstinence Health focus from psychoactive substances, including alcohol, and the health Prodeco continuously identifies, evaluates and controls factors that risks of smoking. might affect our peoples’ health in our workplaces. We conduct internal audits on our occupational health management systems Health checks at regular intervals. We have also introduced a voluntary programme of health assessments, which include tests of BMI, cholesterol, blood sugar, Employee participation blood pressure and fatigue, for employees. Many of our people have We encourage all our people to participate in the identification of taken part in these assessments and are receiving treatment where health hazards, risk assessments and setting appropriate controls. necessary. The health checks are becoming increasingly popular as We carry out an employee consultation on any operational change the participants encourage their colleagues and friends to take part that may have occupational health implications; our employees are and become more health aware. represented on occupational health matters.

Health education We conduct continuous education on occupational health topics, with a particular focus on the factors that are most relevant to each individual’s role. We teach our people how to safeguard their own health and encouraged them to think about their colleagues as well. Education emphasises the importance of the correct use of personal protection equipment (PPE), including hand, head, respiratory, hearing and eye protection. We also train employees on the prevention of musculoskeletal diseases; this training includes muscle strengthening, the need for correct work postures and the importance of stretching.

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Environment Our assets focus on mitigating their impacts on the environment, continuously monitoring their performance for potential improvements. We work with affected communities, and monitor development of new technologies to help us improve our performance.

Environmental monitoring in Espinar province

In recent years, the Peruvian Ministry of Environment has Water coordinated an environmental monitoring project that involves During the monitoring project, sampling took place in the basins the sampling of local water, soil, air, animals and sediment of the Cañipía, Salado, Apurímac, Condoroma and Huichima 2 in the Espinar province, an area of approximately 2,280km . rivers, with the majority of points in the Cañipía and Salado basins. Planning for this project started in August 2012. In addition to the The critical parameters for surface water were heavy metals, participation of Peru’s National Water Authority (ANA) and Agency dissolved oxygen, pH and conductivity levels. for Environmental Assessment and Enforcement (OEFA) in the monitoring project, the initiative combines the efforts of several Of the 12,000+ measurements taken, only 2.2% (266) exceeded national and regional governmental organisations: limits set by Peru’s national environmental quality standards (ECA). ANA, OEFA and INGEMMET tested surface and underground • General Environmental Health Bureau (DIGESA) water and determined that the presence of metals in water was due • Regional Health Bureau of Cusco (DIRESA CUSCO) to the natural mineral content of the soil geochemistry around the • National Centre of Occupational Health and Environmental Cañipía and Salado river basins, and not a result of mining activity. Protection for Health (CENSOPAS) The Salado river in particular is characterised by the presence of metals, due to its origin in the thermal waters of Chaquella. • National Animal Health Centre (SENASA) • Geological Mining and Metallurgical Institute (INGEMMET) Air • Provincial Municipality of Espinar Professional Partnership DIGESA and OEFA tested air samples and found that airborne dust (MPE) (particulate matter smaller than 10 microns (PM 10)) measurements Following initial collection and assessment of the information were within ECA limits at all sampling points but one. This was obtained by the national and regional governmental organisations, in the city of Yauri-Espinar; it was concluded to be due to traffic the Ministry of the Environment issued a report in June 2013. emissions and lack of pavements in the city. This was made available to interested parties such as the Espinar municipality, community roundtables, Antapaccay and other Toxin tests on animals mining and exploration companies. SENASA conducted toxicological tests on livestock samples (sheep, The report detailed samples of surface water, underground water, cattle and alpaca) provided by farmers in the province, to evaluate drinking water, air, soil and sediment that were taken at 481 metal concentrations in their vital organs. Results confirmed that points throughout the province. The samples were tested on 40 cause of death in all cases to be diseases related to consanguinity, to 50 different factors, including pH, electrical conductivity and malnutrition and parasites (liver fluke, hydatid disease), rather than heavy metals. The results were consolidated by the Ministry of the the presence of metals. The levels of metals found were within Environment, to form an initial study to determine what further the limits determined by the Codex Alimentarius or “Food Code” environmental monitoring might be required. standards (set by the UN Food and Agriculture Organisation and the World Health Organization) and European regulations on Following this initial monitoring project, a provincial environmental food safety. In addition, the results did not indicate that toxins health surveillance system was created, with annual monitoring were related to the cause of death in any case, or to defects in activities carried out by ANA and OEFA. Results are disseminated newborn animals. to the public via town hall-style meetings, radio shows, newsletters and roundtables with local government, community and local mine representatives.

Recognition for good environmental practice in Peru

In 2015, Peru’s Environmental Assessment and Enforcement Agency The second initiative recognised was a tree planting programme, (OEFA), part of the government’s Ministry of the Environment, originally established to offset Antapaccay’s carbon footprint. held its first awards for good environmental practice. The awards The programme included a feasibility study, a forestry management recognise and incentivise excellent environmental practices by plan completed under the guidance of internal specialists, corporations. They particularly focus on activities that reduce employing local people to cultivate fruit trees, vegetables, and environmental impact and improve sustainable use of natural ornamental and exotic plants in suitable areas, and studies on resources in ways that go beyond Peru’s legislation for businesses. carbon capture and the survival of forest tree species. In addition, there was the creation of the Sacha Wasi greenhouse nursery. This year, OEFA recognised nine companies from different market This now cultivates 100,000 plants each year, that are planted on sectors; Antapaccay was one of only two from the mining sector. Antapaccay and local community land, including school grounds. OEFA recognised Antapaccay for two of its recent environmental programmes. The first involved a range of energy efficiency measures, intended to reduce Antapaccay’s carbon footprint. Measures included swapping out conventional lighting for energy efficient alternatives, fitting LED lighting and installing motion sensors for lighting. These measures have also helped to reduce Antapaccay’s operating costs.

Increasing efficiency and reducing emissions in Chile

Our Altonorte copper smelter, near the Antofagasta port in northern Compliance with our policies and external standards Chile, has been implementing an improvement programme for its All these initiatives are part of the process for implementing environmental performance since 2011, starting with a series of Altonorte’s sustainable development policy. The policy encompasses short-term actions to optimise operations. In total, the programme Chile’s new standards for foundries and smelters, and helps us has cost around $150 million. position ourselves as one of the nation’s leaders in environmental We took a phased approach to developing an integrated stack performance. The initiatives comply with Chile’s new standards, emissions management system, which included creation of a which come into effect in December 2016. centralised control room to improve operational efficiency. During the annual plant maintenance shutdown, we took the opportunity to determine the most efficient type of catalyst for use in the last phase of the process at our acid plants. Implementing these measures in 2011 and 2012 allowed us to reduce SO2 emissions by about 10%.

A new initiative During 2012, we initiated one of our key improvement projects,

Technological change for reducing SO2 emissions. This initiative was approved by the region’s environmental authorities in 2012 and began implementation in 2013 with the replacement of a rotary dryer for a steam-driven one. The new dryer began operation in early 2014. The next stage was constructing a double absorption acid plant, which was completed in May 2015. This initiative led to a further 40% decrease in emissions compared to 2010; as of December 2015, the plant now captures 96.8% of all

SO2 emissions. In addition to that initiative, we are improving our primary gas management system; we expect this to give us robust control of the acid plants. We have implemented a continuous emission monitoring system, which includes self-assessment and external audits. We are also developing a project to determine improved processes to increase the efficiency of copper treatment.

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Society & human rights We have invested almost $2 million in the various enterprise development programmes we run in South America, which support around 5,000 people.

In addition, we have spent over $2 million on roads, helped to create a development centre for small enterprises, $0.5 million on healthcare infrastructure (including hospital based on the United Nations development model, to help and specific ward construction in Argentina) and $400,000 vulnerable families start up businesses. on water distribution infrastructure. In Colombia, we have

Mine closure planning at Alumbrera

Each mining asset maintains a closure plan to ensure a responsible We are currently completing detailed engineering systems for exit after operations cease. We also require assets to actively installing the covers. This includes the working methods, schedule engage with their workers on many topics, including significant and equipment required, as well as a mining plan that includes organisational changes such as closures or divestitures. In these appropriate cover material. circumstances we expect assets to consult and communicate with By July, we plan to have the first advanced engineering plans ready, our people and provide support if possible. for both the final profile of the tailings dam surface, and the dam Alumbrera, our copper asset in Argentina, announced a new design itself, including diversion channels and the final spillway. life-of-mine plan to its employees at the end of 2015. We are We will distribute these documents to our stakeholders and communicating this plan to all employees through the union the relevant regulators, as well as to YMAD, our partner in the safety committee. Alumbrera joint venture. The new plan includes revised specifications for certain environmental features, which include defining the final thickness of cover for our waste dumps and tailings dam. The final determination will be the result of 12 years of research, as well as lab and field-scale trials. We have also undertaken revegetation studies to gather data.

Building partnerships with the state in Colombia

In May 2015, Prodeco signed up to a partnership with Colombia’s Prodeco has already begun developing initiatives in this State Department for Social Prosperity (DPS), to facilitate partnership, many of which have focused on social services. In one community investment projects intended to reduce poverty in the we worked with the principals of all 10 public schools in the Cesar Cesar region. These projects cover four areas: region to develop a project for improving education quality levels. We then received a proposal from Colombia’s Ministry of Education • Income generation (MEN), via the DPS partnership, offering to support the project for • Basic social services use as a pilot programme with potential for implementation across • Social infrastructure the entire country. • Reconciliation and peace building initiatives The programme’s first stage was an analysis of each school’s existing education quality levels. This was completed in December The partnership gives Prodeco access to Colombia’s state network of 2015 and discussed with the school principals. The next step in 2016 social agencies, allowing us to have their support in this work. It is will be to engage an operator to implement the quality initiatives, run by a strategic committee, which meets four times per year to supported by MEN, and aligned to a MEN methodology and KPIs. oversee the partnership’s progress. A separate operating committee oversees individual project progress.

Community development initiatives

Development programme for Peruvian cattle breeders

In 2013, Antapaccay decided to formalise its activities to support • 224 deworming campaigns to control parasitic diseases, that subsistence cattle farmers in the Espinar province, where the included more than 53,000 cows, sheep, llamas and alpaca copper asset is located. This programme is focused specifically on • Artificial insemination programmes for genetic improvement, local families who depend primarily on cattle breeding for their involving over 1,700 dairy cows from 570 separate producers in livelihood. Since formalising the programme, Antapaccay has the surrounding area invested around PEN7.8 million ($2.2 million), addressing four • Artificial insemination programmes for genetic improvement main areas: involving approximately 500 Corriedale sheep from the herds of • Animal health services and artificial insemination 36 families • Creating pasture and fodder • Technical and sanitary assistance for over 82,000 animals • Improving water availability for animal consumption In addition, Antapaccay has planted nearly 2,500ha of fodder oats • Improving local crop production for human consumption in dry lands and created 481ha of permanently cultivated alfalfa pastures. We helped local communities to harvest 450ha of fodder The programme’s success stems from directly and fully involving oats during 2014 and 2015, and conducted an evaluation of oat the local families and community leaders affected, allowing us to productivity in high Andean areas. manage the project in a fully participatory and transparent manner. The impact of the programme has been significant, assisting over Through these initiatives, the province’s milk productivity and 3,000 families from 69 different sectors within Antapaccay’s area of quality has significantly improved, benefiting the local families influence. During 2015, we ran: who depend on it. The project has established synergies with PLACME, Antapaccay’s milk collection plant, within Espinar’s dairy production chain.

FILASAC: wool and fibre production plant

Antapaccay, our Peruvian copper asset, runs an initiative to support FILASAC runs an ongoing training programme for breeders, both alpaca and sheep breeders in the province of Espinar. The FILASAC at the plant and in the field. It offers free shearing during collection plant is in the Pallpata district; it was established in October days, and contributes to breeding knowledge and improved 2014. It offers local breeders fair market prices, as well as product shearing methods. Programmes include: collections with the option of free mechanical shearing, training • Shearing school: theoretical and practical training in programmes and technical advice. electromagnetic shearing, allowing producers to join the labour FILASAC provides local employment and trade opportunities market and become trainers themselves, as well as providing for Pallpata and across Espinar. It coordinates with district technical support to their communities municipalities and community leaders to organise collections based • Fibre and wool classification: theoretical and practical training on each community’s needs, with its main purposes being to: in the national regulations for product classification, with • Develop a wool market for alpaca and sheep breeders opportunities for internships in the plant • Ensure fair and transparent prices for fibre collections FILASAC visits community agricultural fairs to demonstrate • Guarantee fair weighing with electronic scales its training and run shearing competitions. So far the plant has conducted 111 collections from 47 local communities; 44 • Train producers in shearing and fleece practices, and collections took place at the fibre plant and the remainder were product classification from community collection points at individual farms. Over the • Price wool and fibre products based on quality classification, to last 14 months, FILASAC has bought more than 63,000lb of fibre maintain incentives for high quality producers and 350,000lb of wool; it has paid PEN1.65 million to some 850 • Widen producers’ options for selling fibre and wool in Espinar producers. In addition, 244 producers have had training so far; the first group of 25 shearers is being currently trained. • Contribute to fibre and wool price regulation by establishing quality standards and offering training in those requirements

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South America continued...

PLACME: a dairy processing plant in Espinar

PLACME is a cornerstone project run by Antapaccay, our copper • Establishing a self-sustaining not-for-profit dairy processing plant asset in Peru, to support local milk producers. The dairy, established • Giving local cattle breeders the best market price as a non-profit project, offers Espinar dairy producers a fair market • Collecting milk directly from farms, 365 days of the year for milk from cows and alpaca. It collects 16,300 litres of milk each day, via six collection routes, from dairy farming communities • Serving as a link between cattle breeders and the dairy market across Espinar. • Positioning Espinar as a regional and national level milk producer PLACME is recognised by local, regional and national markets as • Producing dairy products of excellent quality producing high quality dairy products, including Andean mature In addition, PLACME also runs technical training programmes, cheese, Edam cheese, mozzarella, yoghurts, butter, milk and which include courses on: improving breeding and productivity blancmange. It is currently considered to be one of the best milk practices, including Good Milking Practices (BPO); milk product producers in South Peru, with products entered for many hygiene and quality; correct use of milking machines; antibiotic events, including Expoalimentaria, Mistura, Congreso Nacional management; and the optimum use of cattle feed. de Quesos Madurados (National Congress of Matured Cheese) and Expovinos. It also runs the more extensive Cattle Breeder School programme: five days of theoretical and practical training at Gloria stable in In addition to complying with relevant national procedures and Vítor-Arequipa. regulations, PLACME is the only company in the Cusco region with a Hazard Analysis Control Certification Point (HACCP). PLACME also offers producers onsite technical assistance, to identify factors that may affect milk productivity or quality. The project’s aim is to develop dairy farming as a sustainable activity with a secure market. It has generated employment, As of 2015, over 500 families from across Espinar have benefited, economic income and business development for the province. with over 400 breeders receiving training. The quality of breeding The goal is to expand production and product range, and become practices and milk produced in the province has increased steadily, a self-sustaining business. PLACME is already contributing to the along with production levels. In one example, the Huisa Ccollana sustainable development of Espinar’s cattle breeders in a number community’s average production level per cow has increased from of ways: 4 litres/day to 12 litres/day.

CREE Educational Resource

Antapaccay, our copper asset in Peru, runs an educational COAR refers to the Peruvian national educational initiative Colegios initiative that supports teachers in providing students with Regular de Alto Rendimiento (High Performance Schools), created for high- Basic Education (EBR) as well as offering EBR to local parents. achieving students in the third to fifth grades to help them achieve It provides educational programmes for urban and rural schools their educational potential. throughout the province of Espinar. It also contributes to the local CREE runs educational programmes in four areas: economy, employing 14 people directly and procuring from over 40 local suppliers. • Academic support: most of the schools in Espinar have large gaps in education, infrastructure and implementation methodology. This is a new educational model for Peru, combining high standards CREE provides academic and methodologic support through the and advanced education technology. Based on an initial analysis generation and provision of educational resources, equipping of Espinar’s education levels, including school conditions and laboratories and providing technology that schools currently infrastructure, and the standards of teacher training, CREE’s aims lack. In addition, it gives extra support to second and sixth-grade are to: primary students with the lowest ECE grades; it also provides • Improve education in Espinar in a creative and assistance to higher performing second-grade secondary students innovative manner, with the active participation of the during their COAR application process, with general academic educational community support for all Espinar schools • Improve Espinar’s ranking in the Ministry of Education • Talent development: discovering and strengthening the artistic, and Regional Department of Education in Cusco (DREC)’s intellectual and academic talents of Espinar’s youth, reinforcing student census evaluation (ECE) of second and final-grade their natural skills primary students • Teacher training programmes: covering teaching methodologies, • Increase the number of students attending COAR schools at use of educational resources and technologies that enable different cities in Peru teachers to strengthen their own knowledge, aptitude • Train teachers at all levels and improve their and abilities academic performance • Schools for parents: ongoing support including nutrition and • Develop academic, cultural, sports and artistic activities psychological programmes There is a specific programme for children with learning difficulties, whether diagnosed by CREE or other educational institutions. In addition, a number of scholarships are given to students in secondary and tertiary education. All programmes have ongoing support from CREE psychologists. CREE has facilities for communications, mathematics, IT, biology and chemistry, physics, English, arts and handicrafts, music, early learning, nutrition and nursing and psychology. It also has a playroom, 250-seater auditorium and library. CREE runs a radio programme managed by students, a polyphonic choir and an Andean orchestra. It hosts an annual ExpoCREE; this is a presentation of Espinar’s talent, as well as demonstrations of educational projects and resources created during the year. In 2015, 1,620 teachers and students from 23 educational institutions participated in programmes at CREE. 820 parents received nutritional information. Espinar is now the highest ranking province in the Cusco region for students’ results in mathematics and second for reading comprehension, with the highest percentage in a satisfactory level.

Glencore Sustainability Report 2015 109 Regional reports

Regional reports: Rest of the World Our presence in Europe and the FSU (the former Soviet Union) includes our headquarters in Baar, as well as a large zinc asset in Kazakhstan, a nickel refinery in Norway, zinc/lead assets in Spain, Germany, Italy and the UK, and many agricultural and logistics assets. This region also includes a significant nickel operation in New Caledonia, in the southwest Pacific Ocean. The total workforce comprises over 45,000 employees and contractors. In 2015: 90 29% 78% local entrepreneurs of our procurement in of our employees in New supported in New Caledonia was with Caledonia were local New Caledonia local suppliers

$211,000 $1.5 58% spent supporting of our procurement in 850 local entrepreneurs million Kazakhstan was with in Kazakhstan invested in local power local suppliers; all of our distribution networks. employees were local 16,000 people benefited from health and education programmes in New Caledonia $1.3 million invested in power generation and distribution in Kazakhstan, as well as roads

110 Glencore Sustainability Report 2015 Kazakhstan

Glencore Manganese Norway Kazzinc Century Aluminum

Almaty

Nikkelverk Key Moscow Lubmin Świnoujście Agricultural Gdynia storage Operations Rostock Gdańsk Nordenham Gdańsk Offices Rotterdam Farmland Russia Szczecin Pacorini metals Antwerp Magdeburg Agricultural Zaklady Tluszczowe w Bodaczowie Thame warehousing storage Rotterdam Port facilities & storage Northeet Wharf Kiev Vlissingen Britannia Re ned Metals JSC Kolos Oil infrastructure Antwerp Usti Budapest Agricultural storage Glencore Manganese France Agricultural Avon storage Agriculture storage Odessa Bilbao Dunaújváros Farmland Ukraine Agriculture port Foktő Gijon Baar Ravenna facilities & storage Aviles Agricultural Rostov Pasajes Novi Sad storage Asturiana Zinc Taman Technology Genova Koper Villagarcia Bucharest Illychevsk La Spezia Trieste So a Livorno Salerno Commodities Vigo Tekirdağ Agricultural Ambarli Bar Copper storage Madrid Naples Barcelona Portovesme Gebze Zinc & lead Madrid Istanbul Valencia Torre Annunziata Cádiz Nickel

Algeciras Pozzallo Ferroalloys

Kazzinc Agriculture Alumina & aluminium storage Iron ore

Seoul Coal Inchon

Gwangyang Shangai Oil Busan Shangai Tokyo Changzhou Agricultural products

Wuxi

Hangzhou New Delhi Ningbo Taipei

Guanghzhou Kolkata Kaoshiung Maharashtra Fangchenggang Mumbai Yangon

Ho Chi Minh Manila Ho Chi Minh City Laem Chabang Pasar New Caledonia Penang Recycling

Port Kelang Koniambo

Jahor Singapore Singapore KPIs Jakarta 2013 2014 2015 Workforce 42,349 47, 8 6 3 45,141 Fatalities 8 6 0 LTIFR 1.75 1.42 1.26 TRIFR 4.12 2.86 2.76 New cases of occupational diseases (per million hours worked) 1.23 0.85 0.84 Scope 1 GHG emissions (thousand tonnes) 2,199 3,146 3,190 Scope 2 GHG emissions (thousand tonnes) 2,627 2,163 1,975 Energy usage (PJ) 56 64 63 Water withdrawal (million m3) 310 313 290 Community investment ($ million) 41 28 34 Payments to governments ($ million) 283 517 676

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Rest of the World continued...

Our people: safety Maintaining safety leadership is a priority across our operations.

SafeAgri

Our FSU assets maintained a strong focus on their safety culture in We carried out an issue-based risk assessment, which determined 2015, which will continue. We began to roll out the SafeAgri programme, many action plans for improvements, which we implemented based on the Group SafeWork initiative; work began in March with accordingly. Agriculture’s HSEC team increased the number of safety leadership sessions in Russia and Ukraine. All FSU asset leaders, announced and unannounced site visits at FSU assets during 2015 country managers and senior HSEC management were present. (over 10 visits). Each visit focused on safety interventions and coaching site managers in leadership and the SafeAgri programme. To deal with the large number of assets in the FSU, we identified To track the implementation of SafeAgri, monthly progress reports a team of 15 additional local SafeAgri trainers. Each trainer was were discussed. responsible for training supervisors and employees and initiating the SafeAgri rollout for a specific a group of FSU assets.

Our people: health We seek to understand and address causes of occupational illnesses amongst our workforce.

A focus on occupational diseases at Kazzinc

During 2015, Kazzinc, our zinc asset in Kazakhstan, has undertaken exposure. Individuals with higher lead levels are transferred to other a number of measures to address the workplace-related health risks duties that do not involve contact with lead, to reduce exposure. facing their people. Kazzinc focused in particular on strengthening Kazzinc has also undertaken a comprehensive review of work its systems for assessing and monitoring our people’s blood lead conditions, and introduced a number of personal protective levels. It also worked on steps to prevent levels from rising, and to equipment changes and upgrades to minimise the risk of reduce levels if they are too high. musculoskeletal or respiratory diseases. We worked with a local public healthcare centre to establish Going forward, one of Kazzinc’s top priorities is to lower its occupational baselines and conduct periodic tests. Monitors track lead at our disease rates, as the asset focuses on identifying and eliminating causes. assets and our people work to a task rota that ensures minimal

Environment We make use of new technologies to minimise our impact on the environment.

Agricultural improvements: no-till farming

Our Russian farming assets started to develop no-till farming method can lead to higher crop yields. We also believe it reduces methods recently; about 5% of our land is cultivated this way, and climate change risks. we intend to increase this figure. Seeds are deposited directly into Although it will increase the chemical usage per hectare for plant untilled soil by opening a narrow slot trench or hole. protection (herbicides and N2O emissions), it will decrease GHG This offers minimal soil disturbance, and allows soil to be emissions from the soil, and reduce the use of fossil fuel and permanently protected by vegetation, significantly reducing soil synthetic nitrogen fertiliser. We expect operational costs per hectare erosion and conserving water in the soil. After several years this to reduce, due to lower fuel consumption and fixed costs per hectare.

Efficient energy management

Nikkelverk in Norway was founded in 1910, and various owners • We have installed new nickel electrowinning tanks with have upgraded and expanded the facility over the years. Today, improved electrical contacts and energy-efficient anodes, it is one of the most efficient nickel refineries in the world; over reducing overall energy consumption and lowering operational the last two years, it has successfully implemented several energy costs. We expect this to provide energy savings of 5GWh per year. management programmes. From great to small, these include • In our cobalt electrowinning assets, we have started using initiatives based on pressurised air, steam, ventilation, reusing waste heat from our sulphuric acid plant to replace electrically- waste heat, and process improvements. generated steam. This is used both internally, to heat our We have implemented a systematic approach to energy facilities, and externally, for heating within the local district. efficiency improvements in our quality system. Norske Veritas We will be selling the equivalent of between 20 and 40GWh provided auditing for the first ISO 50001 (the international every year to the district, and saving 10GWh internally. energy management standard) revision in December 2015, • We are working to replace any remaining older anodes at our with accreditation to take place during the first quarter of 2016. nickel electrowinning assets with new, energy-efficient box- Early improvements have included eliminating the leakage of anodes, as a four-year programme running from 2014 to 2017. pressurised air and reducing steam losses via better installation, Once the programme is completed, we expect it to provide energy eliminating leakages and removing any steam pipes that are no savings of 17GWh per year and improve the stability of our longer in use. We have also stopped using paid-for electricity to electrowinning process. heat our buildings, instead using waste heat from our operations. Three significant energy initiatives implemented in 2015 will provide energy savings of over 30GWh annually. These projects have been made possible through $6 million in funding from ENOVA (the Norwegian government energy fund).

Society & human rights We work in partnership with our communities and recognise that maintaining a constructive dialogue is especially important in challenging times.

Working with the community on redundancies

Koniambo Nickel has contributed significantly to development of Koniambo also provided community schools with $175,000 to industrial development capabilities in New Caledonia’s Northern improve sanitation and learning environments. Province since it began operations there. Unfortunately, recent Koniambo worked closely with tribal leaders and sub-contractors commodity price drops have combined with technical challenges, to mitigate the impact of downsizing. We held town hall meetings leading us to the difficult decision to retrench 250 employees and with sub-contractors, while its procurement team supported 750 contractors in 2015. sub-contractors in diversifying their client bases, and helped them Throughout the decision-making period, Koniambo has maintained join business assistance programmes managed by the provincial timely and transparent dialogue with local contractors, business government. Koniambo also co-funded welding and scaffolding partners, tribal leaders and the provincial government. It has also certification training with the provincial government, as well as provided support for its workforce, host community and local HSE training and accreditation for first-line supervisors working for small businesses. 16 local contractor companies. Nine employees achieved a health and safety certificate in 2015. Before the recent economic downturn, Koniambo ran a training initiative, in partnership with the provincial government, that trained 866 current and prospective employees. 51 completed pre-employment training in mine operations, seven undertook an 18-month superintendent training programme, and 44 completed a 12-month management development programme.

Glencore Sustainability Report 2015 113 Additional information

Glossary

ASM concentrate Artisanal and small-scale mining. A natural commodity consisting of extracted and processed mineral ores; the first step towards producing refined backfilling minerals and metals. Filling mined voids with non-hazardous material generally sourced from mine residues, to ensure long-term stability of direct energy excavations and minimise the effects of seismic activity. Energy used and generated by our operations, including energy generated by combustion in boilers, furnaces and business segment vehicles owned or controlled by us. Sources include coal, Glencore operations are divided into three business coke, diesel, gasoline, biomass, biodiesel, fuel oil, jet fuel, segments: Metals & Minerals, Energy Products and kerosene, LPG, naphtha, natural gas, propane and recovered Agricultural Products. Each segment manages its electricity generated on site. See indirect energy. own marketing, sourcing, hedging, logistics and industrial investments. ECHA The European Chemicals Agency is an agency of the “care & maintenance” phase European Union that manages the technical, scientific and A phase in the lifecycle of an asset where production is administrative aspects of the REACH system and drives stopped, but with the potential to recommence operations at implementation of the EU’s chemicals legislation. a later date; we manage conditions to ensure that the asset remains in a safe and stable condition. EITI The Extractive Industries Transparency Initiative aims to CDP strengthen governance by improving transparency and CDP is an international, not-for-profit organisation that accountability in the extractives sector (oil, gas and mining). provides a global system for companies and cities to EITI promotes revenue transparency by monitoring measure, share and disclose environmental information. and reconciling payments from mining businesses and See www.cdp.net for further information. government revenues at the country level. closure plan ferroalloys A formal document detailing a costed conceptual outline Various iron alloys that have a high proportion of one or of how the operation will be closed, taking into account more other elements, eg manganese, chrome or silicon. the options available to deal with prevailing social and environmental issues. fugitive emissions Emissions that emanate irregularly from many diffuse CO2e sources, such as gas leakages from equipment, and, in the Carbon dioxide equivalent is the universal unit of case of dust, the movements of trucks and machinery in measurement for the global warming potential (GWP) of dusty areas. greenhouse gases, where one unit of CO2e is the GWP for one unit of carbon dioxide. This unit allows us to discuss GCP the equivalence of different GHGs in terms of their GWP. Glencore Corporate Practice, our corporate responsibility

The GWPs used in this report are 1 for CO2 , 28 for methane framework and management programme. and 298 for nitrous oxide, as per IPCC’s 5th Assessment. GHG commodity departments Greenhouse gas. Each of Glencore’s business segments are divided into a number of commodity departments, eg copper, nickel and Greenhouse Gas Protocol ferroalloys within the Metals & Minerals business segment. Standards and guidance for corporate accounting and See pages 6 to 9 for a full list. reporting on GHG emissions, which help governments and business leaders to understand, quantify, and manage GHG community investments emissions (eg CO2). The protocol separates GHG emissions Donations and investments given to the communities into different scopes depending on source. connected to our operations.

GRI indirect energy The Global Reporting Initiative is a network-based Energy used by our sites, but supplied by third parties, organisation that develops and disseminates voluntary often as electricity. This includes electricity, steam and sustainability reporting guidelines; there is a specific heating/cooling. See direct energy. supplement for the mining and metals industry. “industrial activities” grievance process Glencore term covering assets and activities related to A formal mechanism that local community members or commodity production and processing, as separate from other stakeholders can use to register concern about real marketing activities. See marketing activities. or perceived actions by nearby operations, with the objective of resolving problems before they escalate. IPCC The Intergovernmental Panel on Climate Change assesses hazardous scientific, technical and socio-economic information on the Dangerous, as defined by national legislation. risk of human-induced climate change. It was established by the United Nations Environment Programme (UNEP) HPRIs and the World Meteorological Organization (WMO). High potential risk incidents are incidents that could have potentially resulted in a catastrophic (Category 5) or major ISO 9001 (Category 4) outcome. A quality management system standard (not a performance standard) issued by the International Organization for hours worked Standardization (ISO). It is a voluntary standard that can Total hours worked by employees and contractors at our be independently audited by certifying bodies. industrial sites, including overtime but excluding any scheduled or unscheduled absence (eg holidays or sickness) ISO 14001 during the reporting year. A management system standard, similar to ISO 9001, but covering environmental impacts and risk. HSEC Health, safety, environmental and/or communities. LBMA The London Bullion Market Association is an international ICMM trade association, representing the London market for gold The International Council on Mining and Metals is and silver bullion, which promotes refining standards, an industry trade body dedicated to establishing and trading documentation and the development of good promoting leading sustainability practices. trading practices.

IFC LTI The International Finance Corporation is part of the World Lost time injuries are recorded when an employee or Bank Group; it finances private sector ventures and projects contractor is unable to work following an incident. in developing countries and provides these with advice Before 2014, Glencore recorded lost days from the calendar and guidelines. day following the incident, while Xstrata recorded days from the next rostered day after the incident. As a result, ILO combined LTI figures from before to 2014 are not based on The International Labour Organization is a United Nations a consistent definition. agency that seeks the promotion of social justice and internationally recognised human and labour rights. From 2014, we record lost days as beginning on the first rostered day that the worker is absent after the day of ILO Declaration the injury. The day of the injury is not included. LTIs do not include Restricted Work Injuries (RWI) and fatalities. The Declaration on Fundamental Principles and Rights at Work Historic data has been restated to exclude fatalities, as we was adopted by the ILO in 1988, with the core categories used to include these in 2013 and before. of collective bargaining, discrimination, forced labour and child labour. LTIFR LTIFR is the total number of LTIs recorded per million working hours.

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Glossary continued...

“marketing activities” PM Glencore term covering trading and sales activities as well Particulate matter, or dust, usually from industrial sources. as the infrastructure and resources used in transporting products from our industrial sites to customers. protected area See industrial activities. A location that receives protection because of its natural, ecological or cultural value. MARPOL The main international convention for preventing ships REACH from polluting the marine environment, whether by Registration, Evaluation, Authorisation and Restriction of operational or accidental causes. Chemicals is the European Union’s chemicals control act. mixtures stranded asset In the context of product safety regulations, a mixture A financial term to describe an asset that has become or solution comprising two or more substances, where obsolete or non-performing well ahead of its useful life, and each substance is defined as a chemical element and must be recorded on a company’s balance sheet as a loss its compounds in the natural state, or obtained by any of profit. manufacturing process, including any additive necessary to preserve stability and any impurity deriving from the sulphur dioxide process used. A chemical compound (SO2) produced by various industrial processes, including the combustion of sulphur-containing nitrogen oxides fuels. SO2 is a pollutant gas and a precursor to particulates A range of related chemical compounds, collectively in the atmosphere. It can be captured and converted to indicated as NOx, which can react to form GHGs. saleable sulphuric acid. Examples are nitric oxide and nitrogen oxide. tailings occupational disease The residue of an industrial process, especially residue that Any chronic ailment or illness that occurs as a result contains mineral ore. of work or occupational activity; these are typically identified as being more prevalent in a given body of TRIFR workers than in the general population, or in other worker Total Recordable Injury Frequency Rate = number of populations. An occupational disease is different from an fatalities + lost time injuries (LTIs) + restricted work injuries occupational injury. (RWIs) + medical treatment injuries (MTIs) per million hours worked. OCIMF The Oil Companies International Marine Forum is a UNGPs voluntary association of oil companies with an interest The United Nations Global Compact principles cover human in the shipment of crude oil and products. rights, labour, environment and anti-corruption.

OECD Voluntary Principles The Organisation for Economic Co-operation and The Voluntary Principles on Security and Human Rights Development is an international organisation that provides (Voluntary Principles) Initiative is a multi-stakeholder a forum in which governments can work together to share initiative involving governments, companies and NGOs, experiences and seek solutions to tackle economic, social, which promotes a set of principles for oil, gas, and mining environmental and governance challenges. companies to guide them in providing security for their operations in a manner that respects human rights. overburden The rock and soil that lies above a coal seam or ore body waste rock and must be removed for mining activities. Mineral wastes produced during mining, excluding overburden. It includes the parts of ore deposits that are not petajoule processed for economic reasons. Waste rock is either used A measure of energy equivalent to a thousand trillion joules, for backfilling or stored at the surface. or 1015 joules, usually used to express energy consumption by cities or major industries.

water discharged Total of water effluents discharged over the course of the reporting period to subsurface waters, surface waters, sewers, treatment facilities, etc. water stress According to the World Business Council for Sustainable Development, water-stressed areas are defined as having less than 1,700m3 of water available per person per year. water withdrawal Total amount of water drawn into the boundaries of the reporting organisation from all sources for any use over the course of the reporting period. Includes surface water, ground water, rainwater, municipal water and waste water from third parties.

WHO The World Health Organisation is the directing and coordinating authority for health within the United Nations system, which sets many internationally-recognised norms and standards. workforce References to our workforce include both employees and contractors.

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Assurance statement

• The alignment of its policies to the International Council on Mining and Metals (ICMM)’s 10 sustainable development principles and position statements as stated in the section entitled ‘The ICMM application process’ Independent assurance report to Glencore Plc on selected on page 27 (ICMM Subject Matter 1) information in the 2015 Sustainability Report • The approach that it has adopted to identify and prioritise its material sustainable development risks and An overview of the scope of our assurance work opportunities as stated in the section entitled ‘What we We have been engaged by Glencore Plc (“Glencore”) to report on’ on pages 18–19 (ICMM Subject Matter 2) perform a limited assurance engagement on the following • The existence and status of implementation of selected sustainability information (“Subject Matter”) systems and approaches used to manage and report presented in Glencore’s sustainability report for the year the selected material SD risks and opportunities and ended 31 December 2015 (“the Report”). related key performance indicators presented in Table 1 (ICMM Subject Matters 3 and 4 respectively) Selected Subject Matter for assurance • Its self-declaration regarding having prepared this report Glencore’s assertion in relation to: in accordance with the Global Reporting Initiative (GRI) G4 Core Option (ICMM Subject Matter 5) on page 20, and available on Glencore’s website http://www.glencore.com/ Table 1: ICMM Subject Matters 3 and 4 sustainability

Approach to addressing selected Report Assured material risks and opportunities page reference Key performance indicators1 figure Safety Fatalities Total number of fatalities (employee and contractor) 10 Injuries 36–39 Total Recordable Injury Frequency Rate (employee and contractor) 5.06 Total Lost Time Injury Frequency Rate (employee and contractor) 1.32 Health Occupational health 40 Reported KPI not within scope of current year assurance Public health Environment Water use Total water withdrawal (m3) 952 Total water discharge (m3) 815 Energy use Total direct energy consumption (PJ) 134 Total indirect energy consumption (PJ) 108 Waste management Total hazardous and non-hazardous mineral waste (million tonnes) 2,084 54–61 Land use and closure management Total number of Catastrophic (class 5) and Major (class 4) 0 environmental incidents and spills

Climate change Total direct carbon emissions (million tonnes CO2e) 23

Total indirect carbon emissions (million tonnes CO2) 14

Air quality/emissions Total emissions of sulphur dioxide (thousand tonnes SO2) 366 Community & human rights Respecting human rights Reported KPI not within scope of current year assurance Engagement with communities & stakeholders 47–51 Total amount of community investments ($m) 94 Making a contribution to society Our people Work conditions Reported KPI not within scope of current year assurance Workforce attraction & retention Number (representation) of women on the Board 1 41–42 Number/% of female employees 16,382/16 Management of operational changes Reported KPI not within scope of current year assurance Engagement with labour unions Reported KPI not within scope of current year assurance Governance Taxes and royalty payments to governments 47–48 Total amounts of payments to governments ($m) 4,507 Product stewardship Regulatory compliance Access to market 32–33 Reported KPI not within scope of current year assurance Public and environmental health

The Subject Matter has been assessed against the criteria Work performed provided in the ICMM Sustainable Development Framework Our limited assurance procedures included, primarily: Assurance Procedure and the definitions and approaches in the Glencore Corporate Practice (GCP) database field • Making enquiries of management and senior executives definitions document available upon request from Glencore, to obtain an understanding of the overall governance (“Reporting Criteria”). and internal control environment, risk management, materiality assessment and stakeholder engagement Our assurance conclusion processes relevant to the identification, management Based on our procedures described in this report, nothing and reporting of sustainability issues and selected has come to our attention that causes us to believe that the performance indicators. selected Subject Matter, stated above and on the indicated • Evaluation of the design of controls and functionality of pages of the Sustainability Report, for the year ended the Group sustainability information management and 31 December 2015 have not been prepared, in all material reporting database (GCP database) at a corporate level. respects, in accordance with the Reporting Criteria. • Analytical reviews and trend analysis of reported data per asset at a corporate level. Respective responsibilities of Directors and • Conducting physical and desk top reviews at a sample independent assurance provider of assets, selected on a judgemental basis on materiality The Directors are responsible for the preparation of the of contribution to reported group KPI data, geographic sustainability information and statements contained coverage (Africa, Asia, Australia, Europe, North & South within the Report. They are responsible for determining America) and commodity coverage (Aluminium, Coal, Glencore’s sustainability objectives and for establishing Copper, Ferroalloys, Nickel, Zinc and Agriculture). and maintaining appropriate performance management This work was performed to: and internal control systems from which the reported –– corroborate consistency in understanding and information is derived. application of Glencore corporate sustainability policies Our responsibility is to express a conclusion on the selected and the GCP field definitions subject matter based on our procedures. We conducted –– identify systemic challenges to sustainability our engagement in accordance with the International management and data measurement, collection, Standard on Assurance Engagements (ISAE 3000) reporting and control processes, or issues pervasive Assurance Engagements other than Audits or Reviews of to region, department and/or group, for the selected Historical Financial Information issued by the International subject matter Auditing and Assurance Standards Board. This standard requires that we comply with the independence and ethical We believe that our evidence obtained is sufficient requirements and to plan and perform our assurance and appropriate to provide a basis for our limited engagement to obtain sufficient appropriate evidence assurance conclusion. on which to base our limited assurance conclusion. We performed the engagement in accordance with Deloitte’s Inherent limitations independence policies, which cover all of the requirements Inherent limitations exist in all assurance engagements due of the International Federation of Accountants’ Code of to the selective testing of the information being examined. Ethics and in some areas are more restrictive. The firm Therefore fraud, error or non-compliance may occur and not applies the International Standard on Quality Control be detected. Additionally non-financial information, such 1 and accordingly maintains a comprehensive system as that included in the Report, is subject to more inherent of quality control including documented policies limitations than financial information, given the nature and and procedures regarding compliance with ethical methods used for determining, calculating and sampling or requirements, professional standards and applicable legal estimating such information. and regulatory requirements. Our work has been undertaken so that we might state to the The evidence gathering procedures for a limited assurance Company those matters we are required to state to them in engagement are more limited than for a reasonable this report and for no other purpose. To the fullest extent assurance engagement which is akin to a financial permitted by law, we do not accept or assume responsibility audit, and therefore less assurance is obtained than for a to anyone other than Glencore for our work, for this report, reasonable assurance engagement. or for the conclusions we have formed.

Deloitte LLP London, United Kingdom 6 May 2016

Glencore Sustainability Report 2015 119 Additional information

Contacts

We welcome feedback on this report or on any other aspect of sustainability at Glencore. You can send general comments to [email protected] Otherwise you can contact:

Corporate sustainability Michael Fahrbach Tel: +41 (0) 41 709 2571 [email protected]

Corporate communications Pam Bell Tel: +44 20 7412 3471 [email protected]

Charles Watenphul Tel: +41 (0) 41 709 2462 [email protected]

120 Glencore Sustainability Report 2015 This document contains statements that are, or may Neither Glencore nor any of its associates or directors, be deemed to be, “forward looking statements” which officers or advisers, provides any representation, assurance are prospective in nature. These forward looking or guarantee that the occurrence of the events expressed statements may be identified by the use of forward or implied in any forward-looking statements in this looking terminology, or the negative thereof such as document will actually occur. You are cautioned not to place “plans”, “expects” or “does not expect”, “is expected”, undue reliance on these forward-looking statements which “continues”, “assumes”, “is subject to”, “budget”, only speak as of the date of this document. Other than “s c h e du l e d”, “e s t i m at e s”, “a i m s”, “f o r e c a s t s”, “r i s k s”, in accordance with its legal or regulatory obligations “intends”, “positioned”, “predicts”, “anticipates” or “does (including under the UK Listing Rules and the Disclosure not anticipate”, or “believes”, or variations of such words and Transparency Rules of the Financial Conduct Authority or comparable terminology and phrases or statements that and the Rules Governing the Listing of Securities on the certain actions, events or results “may”, “could”, “should”, Stock Exchange of Hong Kong Limited and the Listing “shall”, “would”, “might” or “will” be taken, occur or be Requirements of the Johannesburg Stock Exchange achieved. Such statements are qualified in their entirety Limited), Glencore is not under any obligation and Glencore by the inherent risks and uncertainties surrounding and its affiliates expressly disclaim any intention, obligation future expectations. Forward-looking statements are not or undertaking to update or revise any forward looking based on historical facts, but rather on current predictions, statements, whether as a result of new information, future expectations, beliefs, opinions, plans, objectives, goals, events or otherwise. This document shall not, under any intentions and projections about future events, results of circumstances, create any implication that there has been no operations, prospects, financial condition and discussions change in the business or affairs of Glencore since the date of strategy. of this document or that the information contained herein is correct as at any time subsequent to its date. By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are No statement in this document is intended as a profit beyond Glencore’s control. Forward looking statements are forecast or a profit estimate and no statement in this not guarantees of future performance and may and often do document should be interpreted to mean that earnings differ materially from actual results. Important factors that per Glencore share for the current or future financial years could cause these uncertainties include, but are not limited would necessarily match or exceed the historical published to those discussed in the Principal Risks and Uncertainties earnings per Glencore share. section in Glencore’s 2015 Annual Report. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this document does not constitute a recommendation regarding any securities.

Designed and produced by Radley Yeldar www.ry.com This report is printed on Cocoon Offset paper, made from 100% genuine de-inked post-consumer waste which is FSC® Certified and manufactured at a mill that is certified to the ISO 14001 environmental standard. Printed by Principal Colour Principal Colour are ISO 14001 certified, Alcohol Free and FSC® Chain of Custody certified. The inks used are vegetable oil based. Glencore plc Baarermattstrasse 3 CH-6340 Baar Switzerland Tel: +41 41 709 2000 Fax: +41 41 709 3000 E-mail: [email protected] www.glencore.com